Share this content

Care Home - Corporate Structure for VAT reclaim

I've come across an old posting relating to a Scheme whereby Care Homes (who are VAT exempt) can set up a new intermediary company to allow VAT to then be reclaimed on some / all of their input supplies.

Can anyone shed a bit more light on this, or point in the right direction for further advice on this.

Many thanks


Please login or register to join the discussion.

I'm only guessing...

... but it seems to me you could have company A as proprietor of the care home (paying all the repair/maintenance bills and light/heat - lower rated) engaging company B to provide the care function (exempt, paying all the staff - OtS, medical support - exempt, food for the inmates, I mean residents - zero-rated).

It looks as though company B would then need to be the state-regulated body, making an exempt supply to company A, company A (not-regulated) then makes an onward supply to VAT registered parties like local authorities and gets to recover the lion's share of the VAT.

Just a suggestion though.

Thanks (0)