HMRC have revised their stance on the VAT recovery of ScriptSwitch prescribing support software.
Despite having previously confirmed its ineligibility under the Contracted-Out-Services guidelines; HMRC have now confirmed it is in fact eligible under COS 14.
The reason given within the communications is that they now accept ScriptSwitch has been designed to the specification of the recipient and has no application outside of the NHS.
Furthermore, we understand that HMRC are actively reviewing COS Heading 14 more generally; however we would not expect this to be a particularly quick affair, unfortunately there is currently no indication of what the NHS are expected to do in the interim period.
If you have previously received an assessment for VAT recovered in respect of ScriptSwitch:
You should notify HMRC via email@example.com using the subject header of ‘ScriptSwitch Repayment’
- For CCGs that may have merged since the assessment, you should provide the entity name and VRN on the notification
If you have previously submitted a clearance request to HMRC concerning ScriptSwitch; and HMRC have ruled it was ineligible for VAT recovery:
You should now quantify the VAT going back to 1 April of the tax year in which the request was submitted via firstname.lastname@example.org
If you had ceased recovery following the issue of the initial letter in 2017:
You should now amend your next VAT Return to include the additional VAT recovery (if applicable)
If you have not recovered any VAT, or engaged HMRC regarding the appropriate treatment:
You may retrospectively adjust your VAT recovery since 1 April 2017
Should you have any questions, please feel free to contact your dedicated NHS VAT advisor who will be more than happy to assist you.