With mounting budget pressures, structural reforms and the introduction of VAT penalties for the NHS, it has never been more important to maximise VAT recovery and ensure VAT compliance. Our NHS VAT review services are designed to do just that.
As well as a systematic examination of a client’s VAT records, we also review procedures and policies in order to document current practices, determine the level of VAT awareness and compliance and to recommend areas of improvement and more importantly; future VAT savings/refunds.
VAT review services include:
NHS VAT expenditure reviews
We conduct detailed reviews of expenditure to ensure that our NHS clients recover the maximum VAT possible on eligible contracted-out services (COS) and business input tax. With increased globalisaton of NHS purchasing, we also identify VAT to be declared on certain overseas purchases. Furthermore, we identify VAT amounts claimed in error, to ensure that the risk of possible penalties is minimised.
Our review process utilises detailed NHS VAT experience together with proven methodologies and data analysis techniques developed over many years to identify all VAT recovery opportunities within an accounts payable system. This ensures that all possible VAT refunds are identified and claimed in a timely manner.
Our reports include a full audit trail of invoices to enable your staff to learn from our findings.
NHS VAT income reviews
NHS organisations engage in certain income generation activities and transactions which are treated as business activities for VAT purposes. Normal VAT rules therefore apply to these activities and must be treated as taxable (standard-rated currently at 20%, reduce-rated 5% or zero-rated 0%) or exempt from VAT and output tax must be declared where appropriate.
We can conduct systematic reviews of our NHS client’s income generation records including sales invoices and cashbooks in order to determine the correct VAT treatment. Any VAT adjustments necessary (for either under-declared or over-declared output tax) can be reported to you for inclusion in your monthly VAT returns.
NHS Capital VAT planning
NHS organisations are able to recover VAT on a proportion of building costs, where the work involves an element of eligible contracted-out services (COS) VAT. Some building schemes may also form part of the direct or indirect (overhead) costs of your business activities.
We take a strategic approach to reviewing capital schemes in order to gain a full understanding of the nature and use of each scheme and to ensure that all information is available in order to maximise VAT recovery.