CRS VAT Consulting has been working through a number of policy and technical issues with HMRC following submission of the Fleming VAT claims, with a view to getting these approved. Although HMRC are yet to pay out any of these claims to the NHS, they aim to settle all claims by the end of 2011. [...]
You will probably be aware that the VAT rate is due to revert to 17.5% with effect from 1 January 2010. Some opportunities may be available to benefit from the existing 15% rate, but “anti-forestalling” legislation introduced by HMRC in the 2009 Budget must be fully considered first. The aim of HMRC’s rules is to [...]
In a further development of the VAT treatment of supplies of agency staff, HMRC have made available a draft business brief which aims to clarify their policy on the VAT treatment of supplies of health professionals, nursing auxiliaries and care assistants by employment agencies. HMRC states that where an agency supplies registered health professionals such [...]
In our last few NHS VAT updates, we have informed NHS bodies about the ‘potential’ changes to the contracted-out services (“COS”) VAT recovery headings, in particular heading 52. There is still a great deal of uncertainty and speculation regarding the nature and timing of these changes, so in order to provide some clarity for our [...]
As outlined in previous updates, we are in the process of submitting ‘Fleming’ VAT claims for NHS Trusts prior to the 31 March 2009 deadline. HMRC accept that any claim will be based upon estimating/extrapolating more recent accounts information and we have a range of methodologies and practices in place to extract the relevant information [...]
HMRC recently issued a Revenue and Customs Brief explaining their change in policy on the VAT treatment of excess charges for car-parking. Previously, HMRC considered that in non-local authority car parks (including NHS operated car-parks), excess parking charges were additional consideration for a supply of parking and therefore subject to VAT. However, they have now [...]
HMRC have recently announced changes to its management of tax for Public Sector bodies including some of the larger NHS bodies. They have created a new national team within local VAT office compliance and have appointed Customer Relationship Managers (“CRMs”), who will be responsible for the day-to-day contact between HMRC and Trusts with a view [...]
Changes which came into effect from 1 May 2007 meant that certain medical services which were previously treated as exempt from VAT became subject to VAT at the standard-rate. We announced in our previous bulletins that these changes affected NHS Trusts which generate non-NHS business income from activities such as clinical trials or occupational health [...]
As outlined in the pre-budget report, the standard rate of VAT will fall from 17.5% to 15% for a thirteen month period from 1 December 2008 to 31 December 2009, when it will return to 17.5%. Any sales of standard-rated goods or services that take place on or after 1 December 2008 should be at [...]
As outlined in our previous updates, the VAT staff-hire concession which is currently in place allows certain supplies of temporary workers by employment businesses (agencies) to exclude the wages element when charging VAT, i.e. VAT is only due on the commission (unless the commission turnover is less than the VAT registration threshold). Some employment businesses [...]