Welfare Restructure

HMRC Attack Social Care Providers’ VAT Planning Arrangements

On Thursday 24th April 2025 HMRC issued a Policy Note alleging that certain VAT arrangements by care providers might be considered ‘Avoidance’.

This planning has been been in place for over 10 years and has its foundations in law and compliance visits from HMRC.

The Policy Note is merely HMRC’s view with little detail on its basis in law.

This view is to be tested and we are representing many providers who might otherwise gain some level of financial relief through VAT.

If you are affected or concerned by HMRC’s note then please get in touch to discuss how we can support you as a result of this Policy. You will also benefit from our action to challenge this view which we consider to be incorrect.

Interested in Welfare Restructuring?

Contact Kieran Lynch & Co today to learn how we can help you unlock significant VAT savings and enhance the value of your care business.

Get in touch with our experts — and start benefiting from this proven VAT planning approach.