HMRC have now officially accepted the decision of the Court of Appeal in the HMRC v Northumbria Healthcare NHS Foundation Trust case concerning VAT on Salary Sacrifice Lease Cars (SSLS).
Following the decision, there was uncertainty as to whether the usual 4-year cap would apply to any retrospective claims, or whether this could be extended to the 01 October 2012 date that Northumbria were entitled to. In a real win to the ever squeezed NHS, HMRC have confirmed that they will accept claims relating to VAT on these supplies for periods from 01 October 2012, effectively doubling the normal period that organisations may retrospectively recover VAT.
There are however, three requirements that the Trust should satisfy to use the extended period:
- The Trust should ensure that it was directly issued with the Interim, Guidance and FAQs on 20 September 2016 and 19 September 2017;
- Any such claim is submitted on or before 31 March 2021, subject to exceptional circumstances (where you will need to contact HMRC to request longer); and
- The unjust enrichment provisions should be considered. This means Trusts will need to consider whether the claim money should be refunded to individuals involved in the schemes which may depend on the agreements and terms in place.
Additionally, where an employee receives a second car, HMRC expect the employee to have the right to private use of that vehicle and meet the conditions of the VAT (Treatment of Transactions) Order 1992.
BBVAT Expertise & Support
BBVAT have a long-established reputation across the NHS for a thorough and consistent approach, this would be applied to ensure that VAT reclaims are maximised, and no stones are left unturned.
If you wish to discuss how we could support your organisation, and to ensure that you are able to submit a robust, compliant clam in-time for the 31 March 2021, please do not hesitate to contact us here