HMRC have advised of the following requirements:
“All NHS Clients (and VAT advisers) working on P21+ Projects should note that the following notification information should be provided to HMRC before the expiry of 31 July Contracted-Out Services deadline (where there are VAT costs incurred on a project relating to the previous financial year) in order to protect any claims to VAT recovery that may be arising;
- NHS Client name and VAT registration number;
- The name of the Project;
- The P21+ registration number for the Project;
- The planned date of start of construction;
- If this is a case where GMP has been delayed the reason for the delay, this will enable HMRC to consider whether any VAT incurred for the previous financial year can be claimed in a subsequent year once the GMP has been agreed and a VAT recovery Claim submitted for the Project;
- A brief description of the current position for the scheme e.g. the Project has recently commenced; the scheme has stalled at Stages 1 ,2 or 3; GMP is in negotiation, planned new extension.
Where this action is taken HMRC have indicated that they will consider a Project as properly notified and VAT on costs incurred in the previous financial year will be allowed (if reclaimable) upon the NHS Client receiving written agreement to the submission made at Initial Assessment. Where an adviser is working on more than one P21+ scheme or for multiple NHS clients then HMRC will accept notification in spread sheet format or NHS Clients can use the template provided at Annex D within the P21+ VAT Recovery Guidance documentation.
NHS Clients should also note that:
- Where a Project has a GMP agreed in the previous financial year (and the Contracted-Out Services deadline for claims has not yet been reached – then the Trust or its advisers should complete and submit all P21+ documentation and forward it for receipt to HM Revenue & Customs by the deadline of 31 July (i.e. before the Contracted-Out Services deadline)
- Where a Trusts scheme details have been previously notified to HMRC (using the above methodology) but GMP is not yet agreed (with the Contracted –out Services deadline of 31 July approaching) and VAT costs have been incurred for which a COS refund may be due AND the primary reason for the GMP delay (beyond that previously notified) can be evidenced as being ecological and/or political then a claim will be admissible.
- In the above bullet, where a scheme has not had GMP agreed and it has a valid political or ecological reason established and the delay in GMP continues into a further COS year(s) then further notification(s) should be received by HMRC before the Contracted-Out Services deadline for the financial year expires
The P21+ VAT Advisor will provide this information to HMRC when the information stated above is made available to them. Trusts using their own VAT advisers should note these requirements and instruct them accordingly.
If the aforementioned action is not taken an NHS Client could become unable to reclaim from HMRC some or all of the VAT they are entitled to as HMRC require notification that a P21+ Project has commenced and that Professional fees are being incurred at the time it starts”
The P21+ VAT Recovery Guidance has been updated to include this and the amended version has been posted on the P21+ Club.