Capital Works, Procure P21+ and Frameworks Scotland – VAT Technical Update
Procure 21+ is a method of procuring major capital schemes for the NHS in England. There is a similar scheme in Scotland called Frameworks Scotland. In simple terms, these procurement routes allow COS recovery on a design and build costs which would otherwise be irrecoverable under normal COS rules.
HMRC require that an initial review is undertaken at the start of the scheme and for the provisional VAT recovery percentage to be agreed with them before any VAT is reclaimed.
As the initial recovery percentage will be based on estimated costs, VAT recovery should be reviewed on completion of the project and final claims submitted to HMRC within 3 months of the final certificate being paid.
Liaison has found significant additional VAT recovery when undertaking final reviews on Procure 21+ and Frameworks projects, however, we are also aware that Trusts disregard the final review and therefore forego potential additional savings.
Please contact your Liaison advisor should you wish to discuss this opportunity in more depth.
Liaison offers a free NHS VAT helpline so for more information contact us on 0800 700 652