Hospice VAT Refund Scheme (UK)
At the VAT People, we have many years of experience in helping hospices navigate through complicated VAT processes, including the refund scheme, which was rolled out following the 2015 Budget announcement.
Our qualified team of specialists knows how difficult operations for hospices can be, and we are dedicated to helping you understand VAT so you can take advantage of the available reliefs and discounts.
Contact us by calling 0161 477 6600, or fill out an online enquiry form and we will get back to you at a more convenient time.
How we can help with your VAT refund
The VAT refund scheme for hospices is a pivotal aspect of VAT management for palliative care charities (although this can also apply to air ambulance, search and rescue and medical courier charities). We are experts in the complex and fluctuating nuances of the UK VAT law, particularly where it pertains to hospices.
We have more than two decades of experience in advising hospices on all aspects of VAT. We are on hand to offer you guidance to maximise your VAT position, by doing so, you can improve your finances, and subsequently, your care standards.
What is the hospice VAT refund scheme?
From 2015, palliative care charities were given the chance to recover input VAT incurred in relation to the organisation's non-business activities, which have been funded by donations or public funds. The scheme is intended to benefit palliative care charities providing services for both adults and children.
Organisations that are not charities may not benefit from the scheme, which means that the subsidiaries of hospices are unable to utilise the scheme. Similarly, organizations that are not hospices, but provide some palliative care, such as nursing homes, cannot benefit.
Hospices are often surprised to learn about the range of items that qualify for VAT recovery (although it should be noted that this is not exhaustive). Simply call us today and we will discuss your circumstances in a free consultation.
Understanding VAT for hospices and the refund scheme
When VAT refund schemes are applicable
Every hospice's VAT situation is unique, and therefore, the VAT refund scheme's applicability varies. We will help you ascertain your eligibility, identify opportunities and guide you through the process of claiming VAT refunds, taking into account every intricacy of your specific circumstances.
Recovery potential for hospices
Properly managing VAT refunds can bring about considerable financial savings. It can lead to better cash flow management, free up funds for services, and help your hospice meet its core objectives more effectively. With our expert assistance, you can realise these benefits and sustain them over time.
Classifying your income: taxable, exempt, or non-business
Whether your income falls under taxable, exempt or non-business categories can substantially impact your VAT obligations and entitlements. We provide correct categorisation to mitigate any legal risks you may otherwise encounter.
Contact The VAT People today
Effective management of VAT is a necessity for hospices. The VAT People are committed to helping your hospice achieve its financial goals through expert VAT consultation and management so you can focus on the important operations of your day-to-day. Contact us today for an initial consultation, and discover how we can support you with VAT recovery.
What VAT can hospices recover using the hospice VAT refund scheme?
The refund scheme was introduced to cover the costs incurred on non-business activities. Hospices can continue to recover VAT on their VATable business activities (if they are registered for VAT), and will still not be able to recover the VAT on their exempt activities.
Since the majority of activities for charitable hospices are classed as non-business, this presents a significant opportunity to maximise its financial position.
How do hospices benefit from the VAT refund scheme?
For hospices to benefit from the refund scheme, those that are already VAT-registered can reclaim costs through their VAT returns. Those that are not can submit separate claims forms to HMRC. In order to benefit, hospices need to carry out the following actions:
- differentiate between non-business activities and those that are exempt from VAT.
- identify a method of apportioning VAT on costs between non-business and business activities (which should be formally agreed upon with HMRC).
- implement a VAT coding structure that will allow it to allocate VAT incurred on expenditure to the various VAT recovery categories.
How do I know if my income is taxable, exempt or non-business?
The main issue that hospices experience is in relation to receiving NHS/government funding, and whether it constitutes a non-business or exempt income. This funding is usually considered to be a grant (although there may be some conditions attached), and as such the income will usually be classed as non-business, potentially allowing for the recovery of input VAT in relation to subsequent non-business activities. Any funding agreements in place should be scrutinised to ensure monies received are not a consideration for a supply.
If you are unsure about whether certain income is taxable, exempt or classed as non-business, seek expert advice.
Get in touch
Speak to the experts by contacting The VAT People today. Our highly experienced and professional team can help with any aspect of VAT, and we are dedicated to helping all types of organisations.
Contact us by calling 0161 477 6600, or fill out an online enquiry form and we will be in touch.