As outlined in previous updates, we are in the process of submitting ‘Fleming’ VAT claims for NHS Trusts prior to the 31 March 2009 deadline. HMRC accept that any claim will be based upon estimating/extrapolating more recent accounts information and we have a range of methodologies and practices in place to extract the relevant information [...]
HMRC recently issued a Revenue and Customs Brief explaining their change in policy on the VAT treatment of excess charges for car-parking. Previously, HMRC considered that in non-local authority car parks (including NHS operated car-parks), excess parking charges were additional consideration for a supply of parking and therefore subject to VAT. However, they have now [...]
HMRC have recently announced changes to its management of tax for Public Sector bodies including some of the larger NHS bodies. They have created a new national team within local VAT office compliance and have appointed Customer Relationship Managers (“CRMs”), who will be responsible for the day-to-day contact between HMRC and Trusts with a view [...]
Changes which came into effect from 1 May 2007 meant that certain medical services which were previously treated as exempt from VAT became subject to VAT at the standard-rate. We announced in our previous bulletins that these changes affected NHS Trusts which generate non-NHS business income from activities such as clinical trials or occupational health [...]
As outlined in the pre-budget report, the standard rate of VAT will fall from 17.5% to 15% for a thirteen month period from 1 December 2008 to 31 December 2009, when it will return to 17.5%. Any sales of standard-rated goods or services that take place on or after 1 December 2008 should be at [...]
As outlined in our previous updates, the VAT staff-hire concession which is currently in place allows certain supplies of temporary workers by employment businesses (agencies) to exclude the wages element when charging VAT, i.e. VAT is only due on the commission (unless the commission turnover is less than the VAT registration threshold). Some employment businesses [...]
In our April update, we informed NHS bodies about some potentially wide sweeping changes to the COS recovery headings. The current Treasury Direction on COS VAT recovery has not changed since December 2002, however HM Treasury has been ‘reviewing the situation’ concerning the list for a couple of years now. In advance of any revised [...]
In our January VAT update, we wrote about the House of Lords judgement in the cases Conde Nast and Fleming, which obliged HMRC to now repay VAT refunds accrued but not claimed for periods before 1996 right the way back to when VAT was introduced in 1973. HMRC have since confirmed that this relates to [...]
NHS bodies or their charitable trustees often embark upon fundraising events. The VAT treatment of these events is an area which can often cause confusion and there are some circumstances where VAT exemption is appropriate for supplies but this is not always the case. Generally, VAT exemption only applies to those events which are promoted [...]
‘Imminent’ Changes The current Treasury Direction on COS VAT recovery has not changed since December 2002, however HM Treasury has been conducting a ‘review’ of the list for at least a year. In advance of any revised Direction being published which has been ‘imminent’ for some time now, HMRC announced changes last year to COS [...]