NHS COS deadline extension

by Berthold Bauer on April 7, 2020

HMRC have written to us today to confirm that the NHS will be granted an extension to VAT recovery for VAT incurred in the 2019-20 financial year. 

VAT for 2019-20 will need to be recovered on the December 2020 VAT return by the latest, due electronically on 7th February 2021.  It has no impact on VAT recovery for the 2020-21 financial year.

This is welcome news for many NHS bodies who have perhaps been concerned about meeting the usual deadline for VAT recovery.  HMRC’s letter also recommends that whilst VAT returns and accounting should continue as far as possible, where there are exceptional needs as a result of the Covid-19 pandemic, a request for estimated COS reclaims can be made in writing.  It is recommended that these are only used where there is no feasible way of calculating actuals, i.e. you do not have adequate staffing to support the accurate coding of invoices. It is important to note that the use of estimates cannot be granted retrospectively, so if you think this is necessary for your organisation, you should submit a request as soon as possible.

Berthold Bauer can assist with any requests, or queries on what the changes mean for you – so please contact us here.

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