Question to the Department of Health and Social Care:

To ask Her Majesty's Government how many approvals and letters of comfort have been given by the NHS Business Authority to enable NHS staff who transfer to wholly owned subsidiaries which have been set up for the purposes of claiming VAT refund, to continue to access the NHS Pension Scheme.

National Health Service organisations are responsible for deciding locally the most appropriate structures they need to put in place to deliver services to their patients within available resources, meeting any tax liabilities that may arise. Recent guidance to NHS trusts and foundation trusts, from the Department states “The only tax advice that the Department deems acceptable is that necessary for the fulfilment of statutory functions and or to assist with compliance with tax rules beyond in house expertise. Tax avoidance schemes should not be entered into under any circumstances.”

VAT status is irrelevant in respect of the application of Her Majesty’s Treasury’s New Fair Deal guidance which requires that NHS employees who transfer compulsorily from a NHS body to an independent organisation retain access to the NHS Pension Scheme in their new employment.