Spectrum Community Health CIC was engaged by NHS England to deliver primary healthcare in prisons. Spectrum believed its various services should be treated separately for VAT purposes.
HMRC disagreed and the First-tier Tribunal dismissed Spectrum’s appeal. Spectrum argued that goods should be treated as separate from medical services based on a CJEU judgment from 1988.
The Upper Tribunal ruled that Spectrum was making a single supply of healthcare services and was not entitled to recover input tax. Spectrum’s appeal was dismissed.
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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.
