While many providers across the care sector have implemented contract restructuring for the recovery of VAT paid on costs incurred from providing services for state funded clients, there are areas of the country where the option is not available.
Contract restructuring is contingent on the co-operation of the local authorities for which a care provider provides services. The more forward-thinking councils are already working with care providers in this area and a number of councils are intending to come on board following a period of review.
Jock Waugh, Managing Director of VAT recovery specialists Kieran Lynch & Co, has been meeting with local authorities, discussing and assisting them to begin working with care providers to implement contract restructuring.
“Recent conversations with large key authorities has seen a wish to move this forward as a way in supporting the sector,” says Jock.
“There is a real chance for public bodies to learn from some of the excellent practice out there and avoid the need to spend money on advisers on this issue at a time when it is endorsed again by the recent Tribunal decision and when local authorities are under such huge financial pressures.”
“Restructuring for VAT recovery is cost-neutral for local authorities and integrated care boards, but it conveys a significant financial benefit to care providers, many of whose business viability is under threat from rising operating costs.
“If local authorities are interested in ensuring continuity of supply, partnering with care providers to facilitate VAT restructuring is an effective way of doing this.”
Want to know more about contract restructuring for VAT recovery? Phone Kieran Lynch on 0114 262 2127 or contact us here.