HMRC have announced this week that Making Tax Digital will be delayed for some bodies, importantly including the NHS, until 1 October 2019. It was anticipated, given the complexities of the NHS and the requirement for monthly returns that they might introduce a delay for the requirement. This of course does allow everyone a little more time to ensure they have the appropriate means to submit their returns with the appropriate software, but it’s something we advise our Clients to prepare for as early as possible to avoid any potential problems.
Last week HMRC announced their plans for VAT if the UK ends up leaving the EU in March 2019 without a deal. They have emphasised that the government is confident a deal will be reached, but they are introducing contingency plans as a precautionary measure.
It has recently come to light that Moorfields Eye Hospital NHS Foundation Trust (Moorfields), an NHS organisation which has traditionally sat outside of the English Divisional VAT Registration has opted to join.
The Chancellor has announced a new VAT relief alongside several other relevant statements:
– Scottish Fire and Police services will no longer be liable for VAT, this will take effect from April 2018; bringing them in line with their counterparts around the United Kingdom.
– The VAT registration threshold will remain at £85,000.00 for the next two years, despite suggestions it could be lowered following a report by the Office of Tax Simplification earlier in November
– It was announced that there would be an “Accident Rescue Charities Grant Scheme”, this appears to be an extension to the 2014 Budget where it was confirmed that VAT relief would be granted to search and rescue charities; essentially a grant to help alleviate the VAT incurred.
In relation to the NHS, they have announced that a one-off £2.8bn of additional funding will be made available in the period of 2017-2020. The funding will be released in three tranches to the health service:
– £350m 2017/18 immediate cash injection to help ease winter pressures
– £1,650m 2018/19
– £850m 2019/20
Additionally a £10bn package of capital investment in front-line services will be provided through to the end of parliament; presumably intended to support the STPs [Sustainability and Transformation Plans] that are currently active throughout the NHS.
Interestingly, the government announced that they are increasing the duty on so called ‘white ciders’ due to their low cost and high alcohol content, perhaps this will, indirectly over time have a positive effect on the NHS spend on treating alcohol related diseases such a liver cirrhosis.