IMPORTANT: P21+ VAT Recovery Reminder: 31st July deadline for notifying HMRC of recovery of VAT on costs incurred in previous year.

The P21+ VAT recovery Guidance includes the following:

“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.”

All (NHS Clients (and their professional Advisors) and PSCPs) involved in any P21+ Project are asked to note the above as the July deadline is approaching.