Although online VAT return filing and payment will become compulsory from 1 April 2010 for businesses with an annual business income turnover of £100,000 or more, these new procedures are not yet available to the NHS. You should therefore continue to receive and submit the paper returns until further guidance is announced for the NHS.
The standard rate of VAT is due to rise from 15% to 17.5% on 1 January 2010. This rise in VAT may encourage NHS organisations to make large value purchases in December 2009 rather than in January 2010, but there are other ways to legitimately take advantage of the lower VAT rate. Below are various [...]
Property owners and landlords (including NHS bodies) are now able to revoke an Option To Tax in order that sales and lettings of a property can revert to being exempt from VAT. This may lead to opportunities for certain NHS bodies which opted property at the inception of the Option To Tax regime. The Option [...]
We are frequently asked to provide definitive advice on the recoverability of VAT on staff agency fees and consultancy services. We have therefore reproduced the current rules below, together with some additional guidance regarding the differences between staff and consultancy services. Nursing and Admin Staff – Headings 41 and 69 At present, NHS bodies are [...]
We are pleased to announce that CRS VAT Consulting has recently been awarded a framework contract through The East of England Collaborative Procurement Hub (“EOECPH”) to provide VAT services as part of a wider analysis and reconciliation framework. The Contract was tendered by EOCPH on behalf of NHS bodies in that region, but also covers [...]
Changes are about to be made in respect of VAT Place of Supply rules from 1 January 2010 due to a Europe wide initiative called “The VAT Package”. It aims to simplify the current rules relating to cross – border supplies of services and the recovery of VAT on purchases made in other EU countries. [...]
CRS VAT Consulting has been working through a number of policy and technical issues with HMRC following submission of the Fleming VAT claims, with a view to getting these approved. Although HMRC are yet to pay out any of these claims to the NHS, they aim to settle all claims by the end of 2011. [...]
You will probably be aware that the VAT rate is due to revert to 17.5% with effect from 1 January 2010. Some opportunities may be available to benefit from the existing 15% rate, but “anti-forestalling” legislation introduced by HMRC in the 2009 Budget must be fully considered first. The aim of HMRC’s rules is to [...]
In a further development of the VAT treatment of supplies of agency staff, HMRC have made available a draft business brief which aims to clarify their policy on the VAT treatment of supplies of health professionals, nursing auxiliaries and care assistants by employment agencies. HMRC states that where an agency supplies registered health professionals such [...]
In our last few NHS VAT updates, we have informed NHS bodies about the ‘potential’ changes to the contracted-out services (“COS”) VAT recovery headings, in particular heading 52. There is still a great deal of uncertainty and speculation regarding the nature and timing of these changes, so in order to provide some clarity for our [...]