To date, the NHS has been able to recover the VAT on professional fees via special arrangement with HMRC, and the ProCure22 (P22) Framework has provided a free VAT Recovery Service. Currently this service is provided by BDO LLP and funded by NHS England and NHS Improvement.
Due to the upcoming expiry of the P22 Framework there will be changes to how this service operates effective from 1 January 2022, as follows:
- Projects that have already formally engaged BDO LLP prior to 1 January 2022 will continue to have the VAT Recovery Service funded by NHS England and NHS Improvement up to the end P22 Framework, and by DHSC where construction continues after the expiry of the P22 Framework. To qualify for this a project using the P22 Framework will need to:
- Be registered on the P22 Scheme database prior to 1 January 2022: and
- Have a signed Memorandum of Understanding (MOU) and Order Form for the P22 VAT Advisor Service to evidence that a formal call-off is in place prior to 1 January 2022. Please note that there will be no national support available for Trusts that have not formally engaged BDO LLP by 1 January 2022.
- Trusts whose projects have not yet engaged BDO LLP will be able to access the same rates agreed in the original DHSC contract tendered in 2016 but will need to call-off directly and pay BDO LLP for this service themselves. This only applies to projects delivered using the P22 Framework. These changes provide continuity of provision of the service to Trusts, while ensuring that it remains cost effective to the NHS.
Please note that:
- The principles identified in the P22 VAT Recovery guidance for P22 Framework Projects agreed with HMRC still apply – the change only applies to the arrangements for the provision of the P22 VAT Advisor Service provided by BDO LLP;
- this change is only for the provision of the P22 VAT Recovery Service provided by BDO LLP and not the provision of any other VAT advice that a Trust may request.
Queries regarding the provision of VAT Recovery advice should directed to:
29 Wellington Street
Leeds LS1 4DL
+44 (0)113 244 3839
Director – VAT
+44(0)113 204 1234 (DDI), +44(0)7812 745575 (Mobile)
Tax Associate – VAT
+44 (0)113 204 1212 (DDI), +44 (0)7812 465010 (Mobile)
Alternative contact: Sarah Kelly +44 (0) 113 290 6168/ firstname.lastname@example.org