NHS: VAT
(asked on 30th October 2017) - View Source
Question to the HM Treasury:
To ask Her Majesty's Government, further to the Written Answer by Mel Stride MP on 12 September (HC8140), why HMRC does not hold information on VAT revenues from NHS bodies at a sufficient level of detail that it would enable them to calculate how much revenue is lost as a result of NHS organisations setting up subsidiary companies with the purpose of reducing their VAT payments.
This question was answered on 13th November 2017
Successive governments have aimed to keep the cost to businesses of VAT administration to the minimum necessary for HM Revenue and Customs to risk assess and assure tax receipts. HMRC routinely receives and maintains the information supplied on the 9 box return of a business, but not detailed information in respect of their suppliers and customers. However, businesses must retain for six years business records with that level of detail, and make these available for inspection.
Successive governments have aimed to keep the cost to businesses of VAT administration to the minimum necessary for HM Revenue and Customs to risk assess and assure tax receipts. HMRC routinely receives and maintains the information supplied on the 9 box return of a business, but not detailed information in respect of their suppliers and customers. However, businesses must retain for six years business records with that level of detail, and make these available for inspection.