There has been a long running issue with HMRC regarding recovery of VAT on agency staff under heading 69.  In February 2014 HMRC wrote to all NHS bodies stating that they believed that the NHS had misunderstood the wording of heading 69 and had been incorrectly reclaiming VAT on agency staff who were undertaking typing, […]

The minutes of this meeting have recently been published.  Many of the usual issues were discussed, but it doesn’t appear that much progress has been made as far as most are concerned: COS headings 41, 45 and 52 are still being considered by the Treasury. Leased cars – HMRC are still collecting information before they […]

Recovery of VAT under heading 52 continues to be targeted by HMRC during their onsite VAT inspections.  HMRC has been adamant that recovery is only allowed when the service involves “advice or information on how to affect something.  This does not include the affecting of that service”. Retrospective assessments have been raised for what HMRC […]

NHS bodies must seek approval from HMRC before making any recovery of VAT on Procure 21+ projects.  Failure to obtain approval at the appropriate time could lead to a significant loss of VAT. It’s important to be aware that although the payments made during the early stages of P21+ contracts will relate to professional services, […]

Following a Treasury review HMRC has confirmed that VAT incurred on multifunction office machines is eligible for recovery under heading 25, so long as they are provided with a maintenance package. The advice from HMRC is as follows: …multifunctional office devices – supplied under serviced lease contracts and serving as a printer, a means of reprography […]