The PM announced on Friday a VAT deferral to support UK
businesses in this unprecedented time. The deferral will hopefully help
many businesses to stay afloat during this difficult period, but it is worth
reminding all businesses that this will not abolish any VAT due, it will
simply defer the date it is due for payment and exists to help those in
financial difficulty or hardship. To summarise how this deferral will
work in practice:
The 2020 Budget did have some announcements which will
affect many of our NHS Clients. Firstly, the NHS as a whole will be set
to receive £6 billion of additional funding across the course of this
parliament, and in addition, to support the recent outbreak of coronavirus, an
emergency fund of £5 billion is being set-up. The Chancellor gave
assurances that the NHS would get whatever resource it needs at
this crucial time – a welcome announcement.
HMRC have recently confirmed their stance on ‘lost space’ in relation to the creation of bathrooms using an existing room in a disabled persons home – this was previously known as ‘restitution relief’.
As a result of the recent decision of the Upper Tribunal in the case of Northumbria Healthcare NHS Foundation Trust, there is an opportunity for any NHS bodies that were accounting for VAT by using the 50% input tax block, to reclaim this ‘blocked’ input tax.