Donated Goods to the NHS or other bodies – VAT Concern

We have highlighted to HMRC through our links with business representative bodies including the British Chambers of Commerce and the CBI, a growing concern over a potential VAT liability that will arise for businesses who are manufacturing and then donating items to the NHS. On the VAT front there is the risk that HMRC would regard these items as business gifts which should they exceed the £50 a year gift rule in place under VAT regulations, mean that the donor has to account for VAT on the value they’ve supplied to the third party. This hardly seems to be in the spirit of the VAT legislation, and we are pleased to see that the matter has been raised at the highest level in HM Government. We will keep you posted as we hear on the matter.

For the avoidance of doubt, the content recorded in this news article does not constitute formal advice and we do not guarantee the accuracy of any information provided at the time of reading. It is always recommended that you should seek professional advice before acting on any of the news articles or information included.