Fuel and power supplied to NHS organisations for use in hospitals and offices is classed as commercial use, which is subject to VAT at 20%. Unless you are using this fuel for taxable business purposes, there is no scope to recover the VAT under the current NHS rules.
However, supplies of fuel and power can be subject to the reduced rate of 5% VAT when provided for various ‘qualifying’ uses. For the NHS, this is for uses such as care homes, student accommodation or staff accommodation.
If VAT has been incorrectly charged at 20% on fuel bills for qualifying use, it is possible to obtain a refund going back up to four years.
If you think this might be an issue for your NHS organisation, we can help.
Our team of experienced NHS VAT specialists can undertake a thorough examination of your fuel bills, focusing on qualifying use properties, to identify areas where reduced rate VAT savings can be obtained.
The benefits of a review are:
o Potential initial VAT refunds and future cost savings
o Compliance with VAT regulations
o Reducing the risk of penalties or fines
o Expert guidance and ongoing support to adapt to changing regulations
o Fully contingent fees – so you only pay for savings or compliance corrections
Our goal is to help you achieve legitimate VAT savings retrospectively and on future supplies and ensure compliance with VAT regulations.
Get in touch to see how we can help you on 0845 686 0400