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A charity provides residential care operations to a local authority for an all-encompassing price. This supply has always been treated as exempt, but HMRC are now suggesting that the standard rate should apply
We act on behalf of a charity client which has a service level agreement with the local authority. The contract is that our client will supply residential care operations to the local authority.
Nothing medical is involved in regard to these services which basically consist of accommodation learning facilities administration assistance staff support in the community etc to individuals with learning and physical disabilities.
The contract is large and clearly refers to services being supplied from the charity to the local authority and not to any named individuals. There is only one all-encompassing price quoted in the contract – the services listed above are not separately priced.
HMRC are considering whether the contract is taxable at the standard rate of VAT; however our client has always treated the income as exempt from VAT under VATA 1994 Sch 7 Gp 7. We are wondering whether...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
