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Care Home - Corporate Structure for VAT reclaim

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


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03rd Jul 2012 16:42

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.

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