HMRC places temporary hold on VAT compliance reviews

20 April 2020

Liaison Financial

HMRC are in the process of contacting all NHS trusts and health boards that have ongoing enquiries or reviews with HMRC, to inform them of changes to their tax compliance practices in the midst of the current Covid-19 pandemic.

As the coronavirus situation continues to evolve, HMRC has opted to place a temporary hold on its outstanding VAT compliance enquiries. The aim in doing this is to free up some of the financial administrative burden on trusts and health boards, allowing them to remain focused on the areas most needed in the current climate. HMRC will contact those taking advantage of this suspension when the Covid-19 crisis eases and their work resumes.

If an NHS organisation receives a letter from HMRC advising of the temporary suspension of an ongoing enquiry, they can request that HMRC continue with their enquiry if they prefer.

Alison Jones, Managing Director for Liaison Financial, said: “Whilst ensuring tax compliance is obviously of great importance for transparency in the NHS, it is great to see that the HMRC recognises that it isn’t the most vital thing on trusts’ agendas right now, and we applaud them for making this decision and assisting them in making sure that resources are allocated for maximum benefit as we all work towards overcoming Covid-19.

Liaison Financial continues to provide advice and support to NHS organisations for all tax and VAT related issues. To discuss this and other HMRC-led changes brought about by Covid-19, please contact your Liaison Financial VAT Advisor or tell us how we can support you here.