NHS
Early VAT advice saves NHS Trust nearly £100,000
Seeking VAT advice at an early planning stage saved an NHS Trust thousands of pounds. The VAT Liaison team examined architects’ drawings and financial estimates on the relocation of a proposed spa pool. VAT Liaison’s advice allowed alterations to the proposals, thereby ensuring the Trust made full use of the VAT relief available under the zero rating guidelines. This led to the Trust saving nearly £100,000.
Compliance Review leads to £550,000 NHS saving, eventually.
VAT Liaison was instrumental in identifying a significant VAT saving for a Welsh NHS organisation. The first visit, following the change of VAT advisors to VAT Liaison, we noticed that the organisation wasn’t charging VAT to a government department for computer services. As the government department had refused to pay the VAT in the past, it had been assumed by the organisation that VAT wasn’t applicable. However, after negotiation over a three year period between HMRC, the government department, the NHS organisation and several lawyers, the NHS organisation received a payment in excess of £550,000 which related to its input tax in making computer supplies. The government department was able to recover the VAT it was charged.
VAT Liaison’s shared service review nets £400,000
VAT Liaison reviewed the expenditure of an NHS Trust who contracts out their finance facility to a shared service company. On re-reviewing a year’s invoices, one of our VAT Managers was able to secure significant refunds of VAT which, if the review had not taken place in time for the 30 June deadline, would have been lost. The additional recovery discovered by VAT Liaison for this Trust was in excess of £400K.
Merged PCT benefits from VAT Liaison expertise
Having used other VAT advisors for the previous three years, a newly merged PCT contracted with VAT Liaison to provide a review of their purchase invoices, to see if any additional VAT could be identified as recoverable. The Trust was delighted with the additional £90,000 that one of VAT Liaison’s managers identified for the Trust. What made it surprising is that this period had already been reviewed by their previous advisors and that this £90,000 would have been lost from the Trust’s finances. Clearly impressed with the work, the PCT immediately contracted with VAT Liaison to provide its VAT advisory service for the foreseeable future. The Trust commented that VAT Liaison provided the newly reconfigured PCT with VAT assistance at a level they had not been receiving.
Government
Government Department saves £500,000 through VAT Liaison appeal
During a compliance review, the VAT Liaison team identified that one government department was incorrectly charging VAT to another department. Due to the nature of the supply, no VAT recovery was allowed under Section 41 and therefore the VAT incurred was a cost. VAT Liaison was successful in presenting a case to HMRC to establish that the original supply should have been exempt of VAT. Through VAT Liaison’s expertise, a VAT credit of over £500,000 was secured.
Over £1,000,000 saved through extra training
A government department initially bought a specialist training course from VAT Liaison. In preparation for the course, VAT Liaison reviewed all invoices for the year. The training focused on the findings from the review and as a result, the government department were able to make process changes and recover VAT in excess of £1,000,000.
Education
VAT savings via DDA for Colleges
Colleges across the country are undertaking a number of building works under the requirements of the Disability Discrimination Act. Some of these disabled works, however small, could be eligible for zero rating. VAT Liaison has identified a saving in excess of £145,000 across the country.
Partial Exemption method saves £35,000
VAT Liaison was commissioned by a college to review the input tax method it uses to reclaim VAT via its partial exemption calculation. Historically, because of the difficulty that colleges face in attributing their VAT within such a method, substantial amounts of VAT have been lost. VAT Liaison reviewed the method and negotiated a fair and reasonable calculation with HM Revenue and Customs that enabled a fairer reflection of the attribution spanning the previous three years. The net effect was a windfall in excess £35,000 for the college.
Learn Direct College nets £60,000
A college constructed a brand new training restaurant. Given the size of the project, it was included in the Capital Items Adjustment Scheme. Through negotiations with HM Revenue & Customs, the VAT savings identified amounted to £60,000. Using the adjustment scheme, this figure should rise over the next ten years as the taxable activities increase. This college is also the operator for the Learn Direct Hub in its area. Through liaising with HM Revenue & Customs, VAT Liaison established the VAT liabilities of all the different supplies both to and by the college under the provision of Learn Direct services, thereby maximising its VAT efficiency.
Charities
VAT Liaison saves thousands for charity
An investigation by VAT Liaison into the services provided by a charity to the county council uncovered that the service constituted a business activity. As a result it was agreed that invoices should be raised with VAT included at the standard rate. Previously the council had paid for the services in the form of a grant which had not involved the tax. (The county council will in future be able to reclaim the VAT on the invoices so relieving tax payers of any additional costs). Based on the advice of one of VAT Liaison’s Tax Managers, the charity was able to register for VAT and so reap the benefit of claiming back all tax incurred on all purchases, including those associated with its work for the county council. In addition, not only did the charity save £200,000 on the construction costs of a new building, but they now also receive additional VAT advantages from the part of the new building they are not occupying themselves.
VAT saved on Lottery windfall
A charity having been awarded lottery cash for a construction project turned to VAT Liaison for advice. It would have been very easy for the charity to fall into the VAT trap and lose over £1.5m of their lottery funding in payment to HM Revenue & Customs. VAT Liaison scrutinised the drawings and financial model of the proposed buildings and as a result, the charity was able to mitigate its VAT bill.
Housing Associations
Much needed cash boost for housing association
A housing association commissioned VAT Liaison to provide a VAT comprehensive service for 2 years. As part of the initial compliance review, the partial exemption calculation was analysed. With the knowledge gained from understanding the client’s accounts, VAT Liaison was able to suggest a different partial exemption method. A mixture of direct and indirect costs contributed to the presentation of a VAT claim covering the previous three years. After negotiation with HM Revenue & Customs, VAT Liaison reached an agreement that gave the housing association a previously unexpected windfall in excess of £120,000.