Whilst we eagerly await the outcome of the HM Treasury’s ‘VAT and the Public Sector: Reform to VAT Refund Rules’ paper and consultation, (in which a full-VAT refund model is to be explored) a new Treasury Directive has been released expanding the current Contracted-Out-Services (COS) direction
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A win for NHS Lease Cars
by Berthold Bauer on October 30, 2020HMRC 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).
READ MOREVAT and the Public Sector: Reform to VAT Refund Rules
by Berthold Bauer on September 1, 2020For a number of years HM Treasury have been considering potential reforms to the Contracted-Out-Services – numbered 1 through to 76 – which you will be familiar with from our reports. As a quick recap these rules [Section 41 VATA94] are the mechanism with which NHS and Government Departments (GD) reclaims VAT on certain outsourced services.
READ MOREExtension to Import and VAT relief
by Berthold Bauer on July 28, 2020HMRC announced on Friday that the period for which relevant medical supplies, equipment and protective garments brought into the UK free of import duty and VAT has been extended for three months.
READ MOREHMRC will mandate MTD for all businesses from 1st April 2022
by Berthold Bauer on July 21, 2020HMRC have updated their guidance today to confirm that all businesses, regardless of annual turnover, will be required to register for Making Tax Digital as of 1st April 2022. This will extend to any businesses which have registered voluntarily for VAT.
READ MOREVAT on NHS Salary Sacrifice Lease Cars: Court of Appeal rule in favour of the NHS
by Berthold Bauer on July 14, 2020Another bit of good news for the NHS – the Court of Appeal has recently supported the Upper Tribunal’s previous decision that lease cars provided under a salary sacrifice are not a supply for VAT purposes (as a result of the ‘de-supply’ order – “Value Added Tax (Treatment of Transactions) Order 1992 SI 1992/630”).
READ MOREHospitality & Tourism Sector VAT Reduction
by Berthold Bauer on July 8, 2020The Chancellor has today announced that the Hospitality and Tourism sectors will benefit from a substantial reduction of the standard rate of VAT from 20% to 5% for a period of six months (Wednesday 15 July 2020 through to Tuesday 12 January 2021).
READ MOREVAT & Import Duty Updates
by Berthold Bauer on June 5, 2020HMRC announced this week a few further VAT/ import duty reliefs which will support the NHS through this crisis:
- when importing certain animals for scientific research, the guidance can be found here
- when importing certain therapeutic substances like blood-grouping or tissue typing reagents (from plant, animal, other or human origin), the guidance can be found here
- when importing certain substances used for non-commercial biological and chemical research, the guidance can be found here
It is hoped that the above reliefs will support the NHS in their research and testing in relation to Covid-19 without VAT and customs duty being an additional barrier. Trusts should be aware that the reliefs exist, as action may need to be taken in order for them to apply.
Please don’t hesitate to contact one of the Berthold Bauer NHS VAT team if you have any questions about the reliefs.
READ MOREUltrasound Services to Pregnant Women
by Berthold Bauer on May 26, 2020A recent First-Tier Tax Tribunal considered whether various ultrasound scans performed on pregnant women would qualify for exemption under Schedule 9 VATA 1994.
READ MORETemporary ‘VAT free’ PPE for NHS & Care Homes
by Berthold Bauer on April 30, 2020Some more welcome VAT news today, that the VAT on all supplies of Personal Protective Equipment (PPE) will temporarily be zero-rated to reduce the associated cost burden to organisations like the NHS and care homes.
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