HMRC have published issue 131 of Agent Update reminding practitioners of the recently issued Revenue & Customs Brief 2/25 on VAT grouping within the care industry. It explains that a VAT grouping structure used by some state-regulated care providers to recover VAT on costs that relate to supplies of welfare services (that would otherwise be exempt from VAT) is considered a form of tax avoidance. HMRC have confirmed that it is reviewing the use of VAT groupings in the care sector while agents are reminded to ensure that VAT grouping arrangements comply with the requirements set out in VATA 1994 and associated regulations.
Other highlights from the update include:
a reminder from HMRC regarding the unallowable purpose rule in relation to loan relationships noting that updated guidance is in the Corporate Finance Manual (at CFM38100);
how taxpayers must use digital or postal routes to obtain Unique Taxpayer References (UTRs)...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
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HMRC have published issue 131 of Agent Update reminding practitioners of the recently issued Revenue & Customs Brief 2/25 on VAT grouping within the care industry. It explains that a VAT grouping structure used by some state-regulated care providers to recover VAT on costs that relate to supplies of welfare services (that would otherwise be exempt from VAT) is considered a form of tax avoidance. HMRC have confirmed that it is reviewing the use of VAT groupings in the care sector while agents are reminded to ensure that VAT grouping arrangements comply with the requirements set out in VATA 1994 and associated regulations.
Other highlights from the update include:
a reminder from HMRC regarding the unallowable purpose rule in relation to loan relationships noting that updated guidance is in the Corporate Finance Manual (at CFM38100);
how taxpayers must use digital or postal routes to obtain Unique Taxpayer References (UTRs)...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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