NHS VAT News Archives

Royal Mail Cleanmail

Some of the Royal Mail’s postal services became subject to VAT from 2 April 2012, including Cleanmail. We asked HMRC the question back in March whether VAT would be recoverable by NHS bodies on these taxable mailing services and was advised as follows: HMRC stated that COS heading 13; Collection, delivery and distribution services – [...]

August 1st, 2012|Categories: NHS VAT News Archives|Comments Off on Royal Mail Cleanmail

VAT Recovery on Leased Equipment

HM Revenue & Customs (“HMRC”) has recently issued a letter to NHS bodies stating their policy on contracted-out services (“COS”) VAT recovery on leased equipment. In summary, this simply re-iterates the rule (which we included in our newsletter of July 2011) that NHS bodies are only permitted to recover VAT on the maintenance of leased [...]

June 2nd, 2012|Categories: NHS VAT News Archives|Comments Off on VAT Recovery on Leased Equipment

VAT on Recharges of Staff

Determining the VAT liability of supplies of staff is far from straightforward and we are frequently asked by our clients whether VAT should be charged. The relevant legislation is not particularly clear on the point and with the advent of penalties for the NHS, clarifying the issue is a means of taking reasonable care. The [...]

June 1st, 2012|Categories: NHS VAT News Archives|Comments Off on VAT on Recharges of Staff

ECJ Decision on Period of Limitation of Reimbursement of Incorrectly Paid VAT

The ECJ has ruled in the case Banca Antoniana Popolare Veneta (BAPV)(C-427/10) that the normal time limits for a supplier to claim a refund of VAT overpaid to tax authorities could be extended under certain conditions. The case involved a change of VAT treatment of a supply of services, where the treatment was thought initially [...]

February 4th, 2012|Categories: NHS VAT News Archives|Comments Off on ECJ Decision on Period of Limitation of Reimbursement of Incorrectly Paid VAT

Salary Sacrifice – A Bit More Guidance on Taxable Schemes

The following sets out how to properly account for VAT on cycle to work schemes from January 2012, plus some further commentary on the difficulties surrounding lease car schemes. General Rules HMRC Brief 28/11 stated that deductions under salary sacrifice schemes would become subject to VAT where applicable from the 1st January 2012. Trusts already [...]

February 3rd, 2012|Categories: NHS VAT News Archives|Comments Off on Salary Sacrifice – A Bit More Guidance on Taxable Schemes

Service Charges on Leased Buildings – Field Fisher Waterhouse ECJ Referral

The VAT Tribunal of the Field Fisher Waterhouse case TC/2010/01947 has requested a ruling from the ECJ to establish the correct treatment of common area service charges in respect of leased properties (where no option to tax has been exercised, or one cannot be exercised). The case questions whether service charges under a lease of [...]

February 2nd, 2012|Categories: NHS VAT News Archives|Comments Off on Service Charges on Leased Buildings – Field Fisher Waterhouse ECJ Referral

Charitable Healthcare VAT Bill

The Sue Ryder charity has been campaigning to change Government policy on VAT relief for charities providing hospice care, which has resulted in a proposed amendment to the Health and Social Care Bill. A new Bill is now moving through Parliament which will make provision for charitable healthcare providers taking on new responsibilities from the [...]

February 1st, 2012|Categories: NHS VAT News Archives|Comments Off on Charitable Healthcare VAT Bill

New Health VAT Public Notices

HMRC has published two updated VAT Notices (701/31 – Health Institutions and 701/57 – Health Professionals). These include a few areas of clarification which are of interest to NHS bodies. These are: Self Employed Locums As part of the Health Professionals update, the VAT treatment of supplies made by self-employed GP locums, has been clarified. [...]

November 3rd, 2011|Categories: NHS VAT News Archives|Comments Off on New Health VAT Public Notices

VAT on Medical Equipment Supplied in Patient’s Homes

Under the VAT rules, certain medical equipment can be zero-rated where the equipment is a medical or surgical appliance that is designed solely for the relief of a severe abnormality or a severe injury, and has been purchased for the personal or domestic use of a person defined as 'chronically sick or disabled'. This particular [...]

November 2nd, 2011|Categories: NHS VAT News Archives|Comments Off on VAT on Medical Equipment Supplied in Patient’s Homes

VAT Cost Sharing Exemption – Possible Inclusion into UK VAT Law

HMRC are currently considering enacting the VAT Cost Sharing Exemption. This is a provision of EC VAT law not currently applicable in the UK which allows businesses and organisations making VAT exempt and/or non-business supplies to form groups in order to achieve cost savings. The principal benefit of the exemption is that by removing a [...]

November 1st, 2011|Categories: NHS VAT News Archives|Comments Off on VAT Cost Sharing Exemption – Possible Inclusion into UK VAT Law