VAT Recovery for Care Homes

VAT Refund continues to be a lifeline
for Care Home Operators

How the Kingscrest VAT case was secured and what it means to Care Home Owners in England and Northern Ireland.

What is Kingscrest?

Following the High Court Judgement in the Kingscrest Associates Ltd. & Montecello Ltd. case, many homes are now eligible to claim back VAT they have paid between the periods of January 1993 - March 2002.

Under the terms of the VAT Act, 1994 schedule 9 Group 7 item 4 'care' was restricted to care or surgical nature. The effect of this was that unless the care supplied was of a surgical nature, the supplies were considered to be taxable at the standard rate. However, the Value Added Tax (Health & Welfare) Order 2002, amended the previous legislation to confirm that residential care provided by commercially-run institutions was exempt from 21st March 2002.

It is important to note that any output tax is charged only on the Local Authority element as HMRC have announced that in respect of private residents they will allow VAT not to be accounted for due to the obvious difficulties in recovery. The concession is that the input tax reclaimed has to be restricted on a pro-rata basis.

It is our role to negotiate with the Local Authorities concerned in order to charge the output tax for the relevant period, arrange a registration and de–registration for VAT with the HRMC and reclaim all eligible input tax.

Our Role

• We handle all the paperwork.
• We deal with the registration and de-registration of VAT.
• We negotiate with the local authority on your behalf.
• We identify output taxes and preparation to the local authority.
• We identify reclaimable input tax.
• We prepare VAT returns for the period.
• We negotiate with HM Revenue and Customs on your behalf.

Making your claim is very straight forward and simple to process, requiring very little work on your behalf, why not visit our main site at www.salmon-business.com,
alternatively call us now on 01246 293011.

All initial meetings are totally free of charge, and if you cannot make a claim their is no charge.