HM Revenue & Customs (HMRC) has now published the second ‘wave’ of the revised single book of COS VAT guidance for Government departments and NHS bodies, following the review of interpretation of the rules. This has gone live on GOV.UK. The external link which takes you directly to the Contracted Out Services guidance is [...]
As part of the ongoing review of the COS VAT guidance, HM Revenue & Customs (HMRC) has advised us that the next batch of COS guidance will confirm that VAT incurred on the hire, lease or rental of multifunctional devices which serve as printers, photocopiers and faxes is eligible for recovery under COS Heading 25. This [...]
HM Revenue & Customs (HMRC) has now confirmed in a new letter issued to NHS Trusts that it does not intend to raise assessments to claw back VAT said to have been over-recovered under COS heading 69 in periods prior to 1st April 2014. This is following the previous letter issued in February 2014, which [...]
The First Tier Tribunal (FTT) has published its findings in respect of North Lincolnshire and Goole NHS Foundation Trust appeal. This is encouraging news for NHS Trusts which still have outstanding ‘Fleming’ VAT claims which are dependent upon HMRC accepting ‘entitlement’. We submitted claims to HMRC on our client’s behalf back in 2009, for various [...]
As most NHS bodies are aware, HM Revenue & Customs (HMRC) has been actively reviewing the interpretation of the Treasury Direction COS VAT guidance. This is following the aborted attempt earlier this year to impose the more restrictive Government Department (GD) rules on the NHS. At the time, HMRC was forced to back down and [...]
HM Revenue & Customs (HMRC) issued a letter to the NHS in December 2013 stating that the proper tax point (time of supply) rules should be applied to Contracted-out services (COS) VAT recovery. This meant that COS VAT should be claimed on the VAT return for the period in which the invoice is dated, or [...]
In our October 2013 newsletter, we reported that HMRC is undertaking an investigation in to a number of VAT schemes used by NHS Trusts, which involve the hire of locum doctors and other staff on short-term employment contracts that fall outside the scope of VAT. HMRC’s Director-General for Business Tax, Jim Harra, has confirmed that [...]
The HFMA has now published the minutes of the September 2013 meeting of its VAT technical sub-committee, attended by representatives of the VAT profession, HMRC and NHS Trusts. No new VAT developments were announced, but the Committee did discuss several proposed changes to the NHS VAT rules, including the following; a ‘Framework’ agreement for the [...]
Another recent development is the launch of a consultation exercise by the EU Commission on the future of EU VAT rules for public sector bodies and activities in the public interest. As part of this exercise, the Commission has published a consultation document which sets out what it sees as the main issues, namely; possible [...]