- HMRC issued a new update affecting VAT planning for care providers.
- The update challenges the use of VAT grouping structures by state-regulated care providers.
- HMRC identifies these structures as tax avoidance when involving unregulated entities.
- HMRC will refuse new VAT grouping applications and remove entities from existing groups.
- Businesses with similar arrangements should contact HMRC.
- Actions by HMRC will not have retrospective effect.
- Businesses should assess their risk and decide whether to notify HMRC.
- HMRC will investigate tax affairs of those involved in tax avoidance schemes.
Source: mha.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
