The new HMRC policy on VAT grouping within the care industry looks specifically at the use of VAT grouping structures by state-regulated care providers to recover VAT on costs that relate to supplies of welfare services that would otherwise be exempt from VAT. HMRC considers these structures to be a form of tax avoidance.
Many VODG members have established trading subsidiaries for the purposes of contracting with local authorities to enable the reclaiming of VAT. This has been done independently following their own professional advice and decision-making processes.
Subject to sufficient funds being raised, VODG will appoint Philip Middlewood to make direct contact with relevant senior people within local authorities. He will explain and persuade on the benefits of changing how they contract with member organisations on behalf of named VODG members.
We held a short online briefing meeting for CEOs and FDs to learn more about the ongoing work around VAT Novation. The meeting was supported by Philip Middlewood, Project Director and VODG member CEOs.
We would like to understand your interest in supporting the development of a persuasion pack for members who are starting or continuing their efforts to approach local authorities for contract novation. The group is also eager to establish if there is interest amongst members to collectively approach a target list of local authorities.
Stephen Veevers, CEO of Hft, gave a presentation on his organisation's VAT recovery journey, discussing the factors to consider when embarking on such a path, and considering the risks and benefits of VAT novation.
Attached are the two presentations, outlining some of the challenges and opportunities around VAT novation and a summary of the results from our FOIA to councils at the end of last year.
This is an opportunity for members to hear directly from HMRC on the actions they plan to take on VAT grouping structures and to ask clarifying questions. DHSC will also be available.
We are holding a short online briefing meeting for CEOs and FDs to learn more about the ongoing work around VAT Novation. The meeting will be supported by Philip Middlewood, Project Director and VODG member CEOs.
Following VODG’s previous work on VAT novation, this breakfast meeting will bring CEOs together to share their experience of how novation works and how to maximise its opportunities.
