HMRC have heralded a major change to the NHS VAT rules by announcing their intention for the first time to apply ‘penalties for VAT infringements’ for periods beginning on or after 1 April 2011. There have always been penalties for VAT errors made by other taxpayers but these have never before been implemented in the [...]
The ECJ has recently given its judgement on questions from the UK VAT Tribunal in the case of Astra Zeneca, which provided employees with retail vouchers as part of their remuneration. Astra Zeneca argued that input tax on the purchase of these vouchers should be recoverable as a business overhead but that no VAT was [...]
By reviewing the exact time periods and types of VAT as our main competitor, we produce substantial additional results. The following table represents just eight of the latest contracted-out services (“COS”) VAT re-reviews which we have completed for the first nine months of 2009/10 (April to December) where the previous adviser had already carried out [...]
NHS bodies should be aware of a newly published concession which may lead to a decrease in VAT being charged on nursing services which is currently eligible for recovery under the Contracted-Out Services ("COS") rules. HMRC have now permitted nursing agencies (or employment businesses providing nurses, midwives, and other health professionals) to exempt the supply [...]
As stated in the article above, it is common knowledge that NHS bodies are able to recover VAT incurred on supplies of nursing staff (including qualified and non-qualified nurses/healthcare assistants) under COS heading 41 and admin/clerical grade staff (including receptionists, secretaries, etc) under COS heading 69. However, in respect of temporary placements of health professionals [...]
Following on from the submission of Fleming/Conde Nast VAT claims (the first anniversary of the 31 March 2009 deadline having now come and gone), the claims submitted on behalf of NHS bodies still appear to have a long way to go before they are settled. At present, HMRC have stated that both the ‘Lennartz’ and [...]
In our last VAT report, we advised that the new procedures for compulsory online VAT return filing were not yet available to the NHS. HMRC have since stated that online filing will be applicable to the NHS, however the issue of how to file the accompanying VAT21 Form does not yet appear to have been [...]
Revenue and Customs Brief 09/10 announced their revised policy with regard to the supply of education by a university subsidiary trading company. HMRC have reviewed their policy on the treatment of supplies of education delivered by companies that are owned or controlled by a university, and have concluded that, in many cases where a university [...]
Following a recent ECJ decision, (Vereniging Noordelijke Land-en Tuinbouw Organisatie v Staatssecretaris van Financien (C-515/07) – (VNLTO)), and a meeting of the EU Council, it has been anounced by HMRC that from 22 January 2010, the use of the Lennartz mechanism will be restricted to circumstances where goods/services are to be put to both business [...]
NHS bodies should already be aware that when certain services are purchased from an overseas supplier, VAT must be accounted to HMRC (in Box 1 of the VAT Return) under the ‘Reverse Charge’ Procedure. Recent changes have been made to the VAT Place of Supply rules of cross border services to business customers from 1 [...]