HMRC has confirmed that there is no scope for VAT recovery on costs related to the provision of free secure parking used by NHS staff and for patient’s vehicles. We are aware that other advisors have suggested such costs are eligible for recovery under heading 63 ‘Storage, distribution and goods disposal services’. HMRC has confirmed […]

We receive regular queries concerning VAT recovery on grounds maintenance services.  It is not immediately clear which contracted-out services heading is appropriate for costs such as grass cutting, tree surgery and general gardening. The correct heading for these costs is 35, “Maintenance, non-structural repair and cleaning of buildings”. Historically, there was a separate heading for […]

The main change within the new guidance is NHS organisations are now permitted by HMRC to recover the VAT on DBS (PVG for the Scottish Boards) checks. This also allows the VAT to be recovered on the administration fee incurred whilst carrying out the checks. Generally the actual DBS checks will have no VAT on […]

Following last week’s anticipated release of further Contracted Out Services (COS) guidance for the NHS, HM Revenue & Customs (HMRC) has relaxed the rules concerning a number of the codes on the COS list allowing for extended VAT recovery. This short update is designed to get you up to speed on where VAT recovery is […]

We now have the long awaited release of new HMRC guidance on Contracted-out Services VAT recovery. The guidance covers the main codes of interest, particularly codes 14, 25, and 35 which have up until now created some confusion. Would you like to know more? We are running a free webinar to go through the recent […]