HMRC says care industry VAT grouping is tax avoidance

HMRC says care industry VAT grouping is tax avoidance

HMRC is warning that setting up VAT groups in the care industry to reclaim VAT on what would otherwise be exempt supplies is tax avoidance. What’s the full story? HMRC says that it considers the structuring of VAT groups within the care industry to gain a tax advantage to be tax avoidance. State-regulated care providers registered with the Care Quality Commission supplying welfare services are exempt from VAT. This means that VAT is not charged …