The First Tier Tax Tribunal (‘FTTT’) has recently held that where a customer over-pays for parking, the excess amount paid is to be treated as an ex-gratia payment, not subject to VAT. This offers the opportunity for NHS Trusts to make a protective VAT reclaim where they have accounted for output VAT on over-payments received [...]
In our last newsletter, we advised that the scope of VAT recovery under this COS heading is likely to be changing. It has always been common practice for NHS bodies to recover VAT on supplies of admin and clerical agency staff under COS heading 69. We now understand that HMRC plan to revise this interpretation [...]
Many NHS bodies are currently undergoing a compliance check from HMRC on VAT recovered under COS heading 37. This is a follow-up to the previous letter from HMRC of May 2012 concerning VAT recovery under COS heading 37 and whether this is in relation to leased equipment and if so, whether it is by the [...]
The VAT liability of self-storage has changed with effect from 1 October 2012. Under the previous rules, the provision of a clearly defined space for the self-storage of goods was VAT exempt (as a supply of land) unless the self-storage operator had ‘opt to tax’ the land/building. Providers of other types of storage services (such [...]
We have learnt that the scope of VAT recovery under this COS heading is likely to be changing. It has always been common practice for NHS bodies to recover VAT on supplies (from staff agencies) of admin and clerical staff under COS heading 69. Up until around 2007, it was in fact common practice for [...]
As stated in an earlier newsletter, HMRC have been considering their policy concerning the interaction of the NHS COS VAT rules (in particular, COS heading 26; Hire of vehicles including repair & maintenance), and the 50% blocking order VAT restriction on lease cars (applicable to the car lease but not the maintenance). This review is [...]
We have had some further guidance from HMRC on the matter of GPs charging for advice on setting up CCGs. HMRC have in the past advised GP practices that VAT should be charged (depending upon registration limits, etc) for these services. Furthermore, provided the work is of an advisory nature, the VAT should be recoverable [...]
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 – [...]
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 [...]
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 [...]