NHS bodies have historically recovered VAT on all agency staff with the full knowledge of HMRC, however as outlined in our previous news bulletins, they have endeavoured over the last few years to clarify and also restrict the COS headings relating to these types of supplies. There is often confusion as to whether NHS bodies [...]
HM Treasury have completed their review of the COS headings and a revised direction will be issued in the very near future. We shall publish the revised list applicable to the NHS as soon as this becomes available. In the meantime, HMRC have given early notification to a couple of changes which will have retrospective [...]
As outlined in our previous newsletters, there are changes to the VAT liability of certain medical services which came into place on 1 May 2007. These affect NHS Trusts that generate non-NHS medical income from activities such as clinical trials or occupational health services. An example is ‘post-mortem examinations and reports’ provided to coroners, which [...]
We have recently had re-confirmation from HMRC of the current COS VAT recovery rules applicable patient appliances. The term ‘patient appliances’ refers to items worn by patients such as footwear, callipers, wigs, etc and also applies to aids such as wheelchairs and walking frames. Custom Made Items The supply of bespoke surgical footwear or of [...]
A 'Memorandum of Understanding’ relating to joint staff of universities and NHS organisations has been agreed with The Department of Health, NHS Employers and the Universities and Colleges Employers Association in response to the University of Glasgow - v- HM Revenue and Customs VAT tribunal ruling. In the University of Glasgow case released in April [...]
As outlined in our February 2007 newsletter, there are changes to the VAT liability of certain medical services which are due to come into place on 1 May 2007. These will affect NHS Trusts that generate non-NHS medical income from activities such as clinical trials or occupational health services. In our experience, Trusts usually get [...]
The list of eligible contracted-out services published in December 2002 is currently being reviewed by HM Treasury. No conclusions from the review have yet been published but we understand that VAT recovery in relation to professional services is due to be changed. The perception is that the current heading 52 on the list relating to [...]
HMRC have concluded their review of the VAT liability of certain medical services following a consultation process and have issued Revenue & Customs Brief 06/07 detailing changes to the medical exemption. These will come into place on 1 May 2007. The VAT changes are likely to impact mostly upon certain commercial, non-NHS activities undertaken by [...]
Increasingly, NHS organisations are entering into arrangements with third-party suppliers to make facilities available to those suppliers to carry out private health services from NHS premises. The assumption seems to be that no VAT is due on income received by the NHS for supplying facilities, however when examined in more detail, these may include a [...]
Some VAT advisers continue to be promoting retrospective business claims going back further than three-years following various judgements that some aspects of the implementation of the three-year cap (now over ten years ago), was unlawful. Although this may be relevant to some NHS organisations, any retrospective claims are limited to the current VAT registration of [...]