HM Treasury publishes new Contracted-Out Services (COS) list

HM Treasury published a new COS list

3 November 2020

Liaison Financial

On 30 October 2020, HM Treasury published a new COS list, effective from 1 September 2020.

The new list amends the description of some headings and adds six new headings. The amended headings largely clarify the narrative that is already contained within HMRC’s online guidance. With one exception, the new headings have limited relevance to the NHS. 

The VAT 21 has been amended to reflect these changes. HMRC is in the process of revising its online guidance to reflect these amendments and we will advise in due course if their revisions have an impact on the scope for VAT recovery.

Summary of amended headings relevant to the NHS

New heading relevant to the NHS

Heading 78 – Call centre and contact centre services:

Previously, the VAT incurred on such services was recoverable under COS Heading 2 (administration of various schemes). VAT recovery on call and contact centre services should now be made under the new heading.

Kenny Lee, Head of Tax Services at Liaison Financial will be hosting a webinar on this subject on Wednesday 11th November. If you’d like to attend you can register here.

For further clarification on the implications of these revisions, please contact your Liaison Financial VAT advisor or get in touch at

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