NHS VAT Update & Strategic Opportunities. October 2016
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1 NHS VAT Update & Strategic Opportunities October 2016
2 VAT Opportunities & Risks in the NHS Brexit Car Leasing Basic Refresher IT Expenditure Agency Staff Professional Services Managed Services Contracts Overseas Purchases Staff Recharges and Secondments
3 VAT following Brexit
4 Hot off the Press New transitional rules come into force from October 2016 VAT return 1) Lease cars provided to employees under salary sacrifice 2) Lease cars provided under salary sacrifice to non-employees including friends, family and employees of other NHS trusts 3) Salary deduction schemes
5 Penalties & Surcharges Taken reasonable care - no penalty Careless: 0% - 30% Deliberate: 20% - 70% Deliberate with concealment: 30% - 100%
6 Contracted Out Services Are the five basic rules met?
7 IT Services Code 14 Fully managed and serviced computer infrastructure Hardwarecan belong to supplier or be own Software support Development, implementation and support of bespoke software Hosting computing services Archiving computing services
8 IT Services Code 14 Data communications services Desktop communication services (i.e. PACS) Ethernet cabling Data lines Cloud storage
9 IT Services Code 14 Supply and support of off the shelf software - NR License fees NR Line rental Hire, installation or purchase of hardware Telephony including VOIP Hire of computer consultants - NR
10 IT Services Code 14 Bespoke software and substantially modified software Dovetailed services
11 Agency Staff Code 41 Nursing Staff Nurse/ Nursing assistant / Healthcare assistant Community nurses Nursing managers Midwife Phlebotomists ODPs Code 69 A&C Staff stopped from 1 April 2014
12 Agency Staff Doctors/ Locums - NR Care assistants - NR Porters - NR Clinical coders - NR Catering staff - NR Management NR Estates staff - NR IT staff - NR Speech & language therapists - NR Any other healthcare professionals NR
13 Contracted-out Services Category 52 Professional Advice or Opinion VAT is recoverable on the professional services of managers, advisers, experts, specialists and consultants for advice or information on how to affect something. This does not include the affecting of that service themselves.
14 Professional Opinion or Advice Advisory - 52 Legal fees Surveyor Architect Filling a post - NR Agency staff- NR
15 Managed Service Contracts Code 14 IT Services Code 31 Laboratory Services Code 45 Healthcare Facilities Code 61 Printing Services
16 Procurement Tricks Contract Agreement Purchase Order Goods Non-recoverable Qualifying Services - Recoverable
17 Case Study 1 Bed hire from Huntleigh includes maintenance
18 Case Study 2 Bed hire from Huntleigh includes maintenance which is invoiced separately
19 Case Study 3 Bed hire from Huntleigh includes maintenance which is invoiced separately and is covered by a separate contract
20 Case Study 4 Bed hire from Huntleigh Maintenance contract from Hill Rom
21 Overseas Transactions Expenditure Goods Acquisitions from EU Imports from outwith EU Services
22 Income Staff Recharges It is essential to decide whether a recharge of salary constitutes a: supply of staff or supply of services As this can be critical to the VAT treatment of the charge.
23 Income Staff Recharges Supplies of services are taxable by default, but there are exceptions for the NHS which include: Medical services - EX Welfare services - EX Education/training services - EX
24 Income Staff Recharges Supplies of staff are normally taxable Five exceptions Nurses - EX Universities EX/SR Teaching staff secondments- EX Government departments - OS Divisional Registration - OS
25 LiaisonFS.com/Events Visit our website to see our entire programme of webinars Clients receive free and unlimited places for their staff
26 NHS VAT Helpline Attendance on this VAT training allows you free access to our NHS VAT helpline for six months. Speak to Kenny or phone with any query Get answers quickly
27 Join our thriving NHS VAT group on Linkedin for technical tips and update from our team of specialist advisors. Post queries, join discussions or just catch up on the latest NHS VAT news.
28 Liaison s NHS VAT COS app Specially designed for NHS staff to provide quick and easy access to the VAT COS list
29 Kenny Lee Contact Details Head of Tax Services Liaison Telephone: (mobile) Liaison Court, Vincent Road, Worcester, WR5 1BW Fax number: Head office:
30 Questions?
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