HMRC update VAT Group rules for the Care Sector

HMRC has published information aimed at the use of VAT grouping within the care industry.

HMRC’s Brief sets out their stance - they now consider certain structures as tax avoidance that involve VAT grouping state regulated and unregulated bodies to benefit from a greater VAT recovery.

Organisations with such a structure should evaluate their position - even where HMRC has approved the structure.

HMRC suggest professional advice is sought, and indicates it will proactively target the sector to identify and challenge such structures.

VITA has already had discussions with affected organisations, and would be happy to talk to you (or your clients) if you'd like to discuss how you're impacted and the best options to manage your position.