HMRC have recently published updated guidance for some Contracted Out Service headings. Most of the changes are either minor clarifications or amendments to the heading titles. The current published guidance for all Contracted Out Services can be accessed here.

There are clarifications that relate to some of the more relevant headings for NHS Organisations, and we have summarised these below.

COS Heading 26: Hire of vehicles, including repair and maintenance

The guidance has re-instated text confirming that VAT recovery under this heading will only relate to vehicle hire contracts that exceed 30 consecutive days in length. The full published guidance for this heading can be found here.

COS Heading 35: Maintenance, repair and cleaning of buildings

The full title of this heading has been amended, due to previous confusion over the meaning of ‘non-structural repairs’.  Additional text has been added to help clarify what is meant by non-structural works, although it should be noted that the intended scope of this heading has not changed. The full published guidance for this heading can be found here.

COS Heading 52: Professional advice

Although the wording for this heading has been re-written, in practice there is no real change to how supplies will be treated under this heading. There is some clarification surrounding how legal services should be treated, and some additional example of the types of building work professional services that are eligible for reclaim.

Although the clarifications are useful, they simply confirm that our interpretation and application of the rules is in line with HMRC on this heading. The full published guidance for this heading can be found here.

Should you have any queries regarding the guidance, you should contact you VAT Consultant via the normal channels, or you can submit a helpline request here.

HMRC have recently published updated guidance for some Contracted Out Service headings. Most of the changes are either minor clarifications or amendments to the heading titles. The current published guidance for all Contracted Out Services can be accessed here