annex 1- cos headings - amazon web services · annex 1 v3-01.doc this is additional information to...

Annex 1 v3-01.doc

1 This is additional information to help guide members on the application and recovery of VAT using the COS

directory the content has been checked with HMRC for accuracy. The information on these pages does not

replace or modify HMRCs own guidance which is available on gov.uk

Annex 1- COS Headings

HMRC Contracted Out Services Direction Guidance

Table of Contents

About This Document ............................................................................................. 5

Introduction ............................................................................................................. 5

When can I reclaim VAT? ....................................................................................... 7

Are there any exceptions to the normal claim period for COS VAT? ...................... 7

Can I adjust a COS VAT claim I have already made? ............................................ 7

Single/Multiple supplies .......................................................................................... 8

How do I interpret the Treasury’s Direction? .......................................................... 8

Recent developments ............................................................................................. 9

How do I request a new heading in the Treasury’s Direction? ................................ 9

How to use this guidance ..................................................................................... 10

1 - Accounting, invoicing and related services ........................................................

8

2 - Administration of the following: ..........................................................................

9

3 - Administration and collection of toll charges ......................................................

9

4 - Aerial photographic surveys and aerial surveillance ..........................................

9

5 - Agricultural services of the kind normally carried out by the Farming and Rural

Conservation Agency ..............................................................................................

9

6 - Roads: Section 278 Agreements .......................................................................

9

7 - Broadcast monitoring services.........................................................................

12

8 - Cartographic services ......................................................................................

12

9 - Cash in transit services ...................................................................................

12

10 - Catering ......................................................................................................... 12

11 - Ceremonial services ...................................................................................... 12

Annex 1 v3-01.doc

-

2 This is additional information to help guide members on the application and recovery of VAT using

the COS directory the content has been checked with HMRC for accuracy. The information on

these pages does not replace or modify HMRCs own guidance which is available on gov.uk

12 - Childcare services ......................................................................................... 13

13 - Collection, delivery and distribution services .................................................

13

14 - Computer services supplied to the specification of the recipient ...................

14

15 - Conference and exhibition services ...............................................................

17

16 - Debt collection ............................................................................................... 18

17 - Departmental staff records and payroll systems including administration and

payment of pensions .............................................................................................

18 18 Employment advisory services as directed by the Race Relations Act 1976 .

18

19 - Engineering and related process services .....................................................

18

20 - Environmental protection services of the kind normally carried out for the

Department of the Environment, Food and Rural Affairs ......................................

19

21 - Estate management services ........................................................................ 19

22 - Export intelligence services ........................................................................... 19

23 - Filming, audio-visual and production services ...............................................

19

24 - Health promotion activities............................................................................. 19

25 - Hire of reprographic equipment including repair and maintenance................ 20

26 - Hire of vehicles, including repair and maintenance ....................................... 20

27 - Insolvency services ....................................................................................... 21

28 - Interpretation and translation services ...........................................................

21

29 - Issue of documents to, and control of, bingo halls and off-course bookmakers

.............................................................................................................................. 21

30 - Issue of documents under Wireless and Telegraphy Act ...............................

21

31 – Laboratory Services ......................................................................................

21

32 - Laundry services ........................................................................................... 22

33 - Library services ............................................................................................. 22

34 - Maintenance and care of livestock and fauna in connection with the Royal

Parks .................................................................................................................... 22

Annex 1 v3-01.doc

-




35 - Maintenance, non-structural repair and cleaning of buildings ........................

23

36 - Maintenance and repair of civil engineering works ........................................

26

37 - Maintenance, repair and cleaning of equipment, plant, vehicles and vessels

26

38 - Maintenance and repair of statues, monuments and works of art .................

27

39 - Medical and social surveys ............................................................................

27

40 - Messenger, portering and reception services ................................................

27

41 - Nursing services ............................................................................................ 27

42 - Office removals ..............................................................................................

28

43 - Operation and maintenance of static test facilities, engineering and support

services and test range industrial support and security/safety services including

those acquired for the purposes of research and development

............................ 28 44 - Operation and maintenance of stores depots

................................................ 29

45 - Operation of hospitals, health care establishments and health care facilities

and the provision of related services .................................................................... 29

46 Operation of prisons, detention centres and remand centres, including

medical services ................................................................................................... 30

47 - Passenger transport services ........................................................................

31

48 - Pest control services ..................................................................................... 31

49 - Photographic, reprographic, graphic and design services .............................

31

50 - Preparation and despatch of forms ................................................................

32

51 - Press cutting services ....................................................................................

32

52 - Professional advice or opinion on departmental efficiency or policy issues,

legal advice or opinion and internal audit ..............................................................

32 53 - Provision under a PFI agreement of accommodation...

................................. 33

Annex 1 v3-01.doc

-




54 - Publicity services ........................................................................................... 34

55 - Purchasing and procurement services .......................................................... 34

56 - Radio services ............................................................................................... 35

57 - Recruitment and relocation of staff and other related services ......................

35

58 - Research, testing, inspection, certification and approval work for the Health

and Safety Executive ............................................................................................ 36

59 - Scientific work of the kind normally carried out for the Department of the

Environment, Food and Rural Affairs and the Food Standards Agency................ 36

60 - Security Services ...........................................................................................

36

61 - Services of printing, copying, reproducing or mailing of any documents or

publications, including typesetting services .......................................................... 37

62 - Share Registry Survey ...................................................................................

37

63 - Storage, distribution and goods disposal services .........................................

38

64 - Surveying, certification and registration in connection with ships and relevant

record-keeping and verification, issue of certification, cards, discharge books

and

campaign medals to seamen ................................................................................

38 65 - Training, tuition or education .........................................................................

38

66 - Transport research of the kind normally carried out for the Department for

Transport .............................................................................................................. 39

67 - Travel services, excluding hotel accommodation and fares ..........................

39

68 - Travel and transport surveys, including traffic census counts .......................

39

69 - Typing secretarial, telephonist and clerical services including agency staff ..

39

70 - Waste disposal services ................................................................................

40

71 - Welfare services ............................................................................................

40 72 Career guidance, mentoring, counselling and other related services to help

people in to work or to retain work as part of the DWP/Jobcentre Plus Employment

Programme, provided under sections 2 and 9 of the Employment and Training Act

Annex 1 v3-01.doc

-




1973 ......................................................................................................................

41

73 - Services relating to Action Teams for Jobs and Employment Zones .............

41

74 - Original research undertaken in order to gain knowledge and understanding41

75 - Inspection of woodland sites for approval of felling licence applications and of

timber imports/imports using timber packing to prevent entry of foreign tree

pests

and diseases ........................................................................................................ 42

76 - Probation Services delivered under the Criminal Justice and Court Services

Act 2000 ............................................................................................................... 42

Annex A- Examples of items that are eligible for recovery under COS Headings 35

and 37 ...................................................................................................................

43

Annex B – Version History ....................................................................................

52

About This Document

The Tax Centre of Excellence first created this document in February 2016 to incorporate the COS Heading guidance that HMRC had published on their website VATGPB9700 supplemented by HMRC guidance awaiting publication on the website. There is a version history in Annex B that details which guidance is in this document version. You can jump to any Heading by left clicking (or Ctrl + left clicking) on the relevant line in the table of contents above.

Introduction

Government departments and health authorities have been encouraged to contract

out services to the private sector which would have traditionally been performed

inhouse. It is recognised that many of these services would be subject to VAT and

where they were acquired for ’non-business’ purposes, the non-reclaimable VAT

could act as a disincentive to contracting-out.

It was therefore decided to compensate government departments and health

authorities by a direct refund mechanism, which is provided for in section 41(3) of

the VAT Act 1994. Under this provision, the Treasury issues a Direction, commonly

known as the ‘Contracting Out Direction’ which lists both the government

departments and health authorities that are eligible to claim refunds of VAT, and the

services on which VAT can be refunded.

https://www.gov.uk/hmrc-internal-manuals/vat-government-and-public-bodies/vatgpb9700


Annex 1 v3-01.doc

-




Originally there were separate lists of eligible services for each department/NHS

body, but in the 1990s this was consolidated into a single list for all

departments/NHS bodies. You are therefore not prevented from reclaiming VAT on

Annex 1 v3-01.doc

of 51

the purchase of one of these services merely because you had never undertaken the

activity in-house. Additionally, VAT can be recovered on services supplied by

another department under a shared services arrangements if the service is listed in

the Contracting Out Direction.

A full list of the services on which VAT can be reclaimed under the Contracting Out

Direction can be found in VATGPB9700.

When can I reclaim VAT?

Because refunds of VAT under this measure are met from public expenditure rather

than VAT revenues, COS VAT should normally be claimed within the financial year

in which the supply in question has been received - subject to a 3 month adjustment

period - the adjustment can be made no later than the June VAT return following the

financial year end. By “the supply in question has been received”, we mean the tax

point. While the tax point is normally the invoice date, this is not always the case.

Continuous supplies may have a payment tax point.

In circumstances where you have received a supply on which no VAT has been

charged by the supplier and they subsequently issue you with a VAT only invoice,

you can recover the COS VAT in the period in which you received the VAT invoice.

Are there any exceptions to the normal claim period

for COS VAT?

In the following circumstances, you can make a claim outside the financial year in

which the supply was received:

1. Where HMRC has instructed a government department or NHS body that it

cannot claim COS VAT on a particular supply and this turns out to be

incorrect – in these circumstances, the four-year cap applies.

2. Where a government department or NHS body has asked whether a supply it

has received is covered by a particular COS heading, and by the time HMRC

confirms that COS VAT is recoverable the time limits for claiming have

passed – in these circumstances the four-year cap applies.

3. Where there is uncertainty within the NHS (as a whole) or government

departments (as a whole) whether, in relation to a particular service, COS

VAT can be recovered and this is not resolved by HMRC until after the time

limits for claiming have expired – in these circumstances the four year cap

applies.

Can I adjust a COS VAT claim I have already made?

The requirement to claim COS VAT within the financial year in which the supply is

received is restricted to the actual claim itself. If a claim is made at the correct time,

any adjustment to that claim must be made within the normal time limits for adjusting

input tax (please see Notice 700/45).



Annex 1 v3-01.doc

of 51

For example:

• There may have been an error in the amount claimed (but an amount has to

have been claimed).

• The price paid for the service in question may have subsequently increased or

decreased.

• The claim itself may have been subject to a further calculation, such as a

‘business : non-business’ calculation, which itself is adjusted at a later date

because of a higher or lower non-business ratio.

Single/Multiple supplies

When considering whether a supply qualifies for recovery under one of the COS

Headings, Government departments and NHS bodies should initially refer to

guidance in the VAT Supply and Consideration manual to determine whether the

supply they are receiving is a single or multiple supply. When this has been

determined you should then consider whether the supply falls within one of the COS

Headings and is eligible for recovery.

If the supply is a single supply then the predominant nature of the supply will

determine whether it is eligible for recovery under COS.

Where you receive a multiple supply, recovery on each separate supply can be

claimed under the appropriate COS Heading.

How do I interpret the Treasury’s Direction?

We have provided some advice and examples, but they cannot be exhaustive. The

purpose of the Direction should always be considered - namely to ensure that what

would otherwise be irrecoverable VAT does not dissuade you from contracting out a

service to the private or voluntary sector. If the service you are purchasing was

never performed within the government department or the health authority, it is most

unlikely to fall within the ambit of the Direction.

Section 41(3) of the VAT Act 1994 refunds VAT ‘if and to the extent that the

Treasury so direct’. There may be occasions where the Direction is limited to a set of

circumstances prevailing at a particular time. Where this has happened, we explain

the position under the relevant heading. Some Headings are seldom used, or are

bespoke to a particular department, and we do not provide explanations for these.

Additionally, we ask you to continue to use the individual pieces of guidance to

government departments and NHS bodies on heading 52 for a short while longer

until the outcome of HM Treasury’s review of its Direction is known.

http://www.hmrc.gov.uk/manuals/vatscmanual/index.htm

http://www.hmrc.gov.uk/manuals/vatscmanual/index.htm

Annex 1 v3-01.doc

of 51

Recent developments

HM Treasury has agreed that COS refunds may be claimed for the following

activities. Until a revised Direction is published, if you are uncertain which Heading to

use, please use Heading 2.:

1. Call centre and contact centre services

2. Services provided through International Trade Advisers for UK Trade and

Investment

3. Services provided under Framework for Procuring External Support for

Commissioners (FESC) other than:

• Supplies of computer services and professional services that are excluded

from the scope of Headings 14 and 52 above, unless the Treasury directs

otherwise, and

• Elsewhere, the supply of staff.

How do I request a new heading in the Treasury’s

Direction?

HM Treasury will consider requests for a new heading in the Direction, but please be

aware that they will require a detailed business case from you. Please would you

provide this to your Customer Relationship Manager (CRM) or if you do not have a

dedicated CRM please send your application to the Public Bodies Enquiries team

whose details can be accessed on the gov.uk website

https://www.gov.uk/government/organisations/hm-revenue-

customs/contact/publicbodies-enquiries

What the Treasury will require Why they need this information

To ensure that if your application is 1)

A full description of the service or successful, the new heading accurately

activity in question. reflects the contracted-out service you

will be receiving.

2 a) If it is an existing service or activity,

how is it presently provided (for example,

in-house, already outsourced,

through an arms-length body)?

2 b) What options are being, or have been, considered? For example, in-house

provision, part in-house provision, phased outsourcing, full outsourcing,

2 c) Why would outsourcing offer value for money? What are the financial, efficiency

etc. benefits?

When Treasury are considering

requests for a

2 d) Why would

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/public-bodies-enquiries










Annex 1 v3-01.doc

of 51

new headings they look at

VAT be a whether VAT will be a

barrier to barrier to outsourcing and

outsourcing? why outsourcing offers best

value for money.

3) An estimate of the VAT

you will recover each year Required for the purposes of the

National accounts. for

the next five years if

your application is successful.

To provide a timescale. Please be

aware that you will need to wait for a new Treasury direction to be

published 4) The date from which in the Government Gazettes,

and the

you wish the new Heading process for renewing a Direction can be

to take effect. a lengthy one. HM Treasury receives a

substantial number of requests for new

headings, which require Ministerial

approval.

How to use this guidance

To find out what is eligible for recovery under a specific COS Heading, go to

VATGPB9700. This will provide a list of the Headings; you can then select the

appropriate VATGPB link which will take you to the guidance for that Heading.

As with all lists, this guidance could soon become out of date because of the pace of

change. We ask you to share these changes with us, and other departments and

NHS bodies, so that this guidance can be kept updated.

1 - Accounting, invoicing and related services



Annex 1 v3-01.doc

of 51

This Heading concerns the outsourcing of all, or part, of an accounts department although it also covers the procurement of the type of services which would have been undertaken by an accounts department. The exclusions are functions which either had to be procured from external accountants or have since evolved as services supplied by external accountants. It would not include VAT incurred on external audit fees as, by their very nature, they would never have been performed in-house so could not be contracted out.

Includes

• Accountancy services which include general record keeping, invoicing and preparation of tax returns and other related supplies

• Preparation of financial accounts and/or statements and accountancy advice

Excludes

• External Audit fees

• Tax planning advice - for further information refer to VATGPB9450

Additional information

Internal audit reports - these deal with efficiency and any VAT incurred can be

recovered under Heading 52. Recovery is allowed as government departments

have never been allowed to do their own auditing it has to be done by another

body - now the National Audit Office.

2 - Administration of the following: • Career development loans

• Certificates of Experience

• Government support payments to the Railway Industry Pension Funds

• Grants and awards

• Services supplied under the Companies Acts and the Patent and Trademarks Acts

• Teachers’ Superannuation Scheme

• Vehicle Excise Duty refunds

• Winter fuel payment scheme

• Inherited State Earnings Related Pension Scheme

• Student Loan Scheme

• Fast Track Teaching Programme

This Heading can only be used to recover costs which relate to the named

programmes. New programmes can only be added to the list by agreement with

HM Treasury.

3 - Administration and collection of toll charges



Annex 1 v3-01.doc

of 51

This Heading covers the use of a private sector supplier to manage a public sector

tolled road or bridge.

4 - Aerial photographic surveys and aerial

surveillance This Heading covers aerial photographic surveys and aerial surveillance which

includes satellite imagery or photographs.

5 - Agricultural services of the kind normally carried out by the Farming and Rural Conservation Agency The wording of this Heading was amended in 2008 when the Farming and Rural Conservation Agency was abolished under a machinery of Government change.

This Heading covers agricultural services of the kind normally carried out by the Farming and Rural Conservation Agency.

The Heading can be used by the departments of the devolved administrations

which have assumed responsibility for such activities from the Department for

Environment, Food and Rural Affairs (DEFRA).

6 - Roads: Section 278 Agreements

Alteration, repair and maintenance of road

schemes, except (a) any works carried out

pursuant to an agreement made under section 278

of the Highways Act 1980, or (b) works involving

Annex 1 v3-01.doc

of 51

construction on land not already used for road schemes

The key point to this Heading is that it only applies to existing road schemes, so there would be no recovery allowed on the construction of a new road. Where a new stretch of road is added to an existing road scheme so it reaches a new destination, VAT can be recovered on changes to the existing road, for example to road markings, adjustments to the existing pavements and curbs.

Section 278 Agreements

Section 278 of the Highways Act 1980 allows a Highways Authority (HA) to seek contributions from developers towards the cost of works considered to be for the ‘common good’. For example, these works could include the construction of a new slip road or roundabout.

Any work carried out by a HA under a section 278 agreement is a non-business

activity for VAT purposes. This is because the HA has a statutory responsibility

under the Highways Act 1980, to maintain the road on which the work is carried out. As such, the construction works form part of the HA’s statutory responsibilities

for maintaining the road.

As the HA is not able to claim a refund of the VAT under section 41(3) of the VAT Act 1994, it is a condition of the section 278 agreement that the contributions they receive include irrecoverable VAT.

The HA cannot issue a VAT invoice to the bodies making contributions because it is seeking a reimbursement of costs and not making a supply.

The contributor will be unable to recover any VAT element included in the contribution they pay to the HA. This is because the VAT amount does not relate to a supply, which has been made to you. The contractor carrying out the works will always be making a supply to the HA.

Hybrid Road Schemes

‘Hybrid Road Schemes’ are works comprised of new construction together with improvements to the existing road schemes.

As the hybrid schemes involve two types of work, new construction and alteration, the costs must be separately identified for VAT purposes. This is because some of the VAT incurred on new construction undertaken in the hybrid scheme cannot be recovered.

It can sometimes prove very difficult to separate the actual expenditure on new

construction from that on alteration etc. HMRC allows an apportionment of costs to

be made based on the terms of the additional contract.

Annex 1 v3-01.doc

of 51

Annex 1 v3-01.doc

of 51

In cases where it is not possible to directly attribute VAT elements, apportionment may be allowed. Hybrid road schemes are an example of a situation where permission to apportion the VAT has been granted.

Smart Motorways

The alteration of a stretch of motorway to become a smart motorway, and then the alteration, repair and maintenance of the smart motorway, are recoverable under Heading 6. This includes the construction of emergency exit-ways when the hard shoulder is used as a traffic lane and also the installation, repair and maintenance of gantries and signs on smart motorways, this includes the installation of the IT infrastructure.

Tunnels

The construction of new tunnels is not eligible for recovery under Heading 6. However, where a tunnel is built under an existing road scheme and this requires structural alterations or repairs to the existing road scheme, these costs will be eligible for recovery under this Heading. Repairs to existing tunnels which are under a road scheme are recoverable under this Heading.

Bridges

Construction of new road bridges is not recoverable under this Heading. Repairs to existing bridges are recoverable under Heading 36.

Peripherals

Heading 6 also covers the peripherals which are part of the road system like the paths, lighting, roundabouts, pedestrian crossings, refuges and noise barriers. New paths added to existing road schemes are also recoverable under this Heading.

Includes

• Where a health authority alters the layout of existing roads surrounding a hospital for example, in order to facilitate easier and/or safer access to the accident and emergency department. It would also extend to the repair and maintenance of such a road scheme

Excludes

• Winter road clearing and gritting services

• Erecting and maintaining of traffic signs that do not fall within the designated

area of the smart motorway

Annex 1 v3-01.doc

of 51

7 - Broadcast monitoring services This Heading covers broadcast monitoring services.

Includes

• Recording news and TV programmes which are relevant to the work of a government department/health authority

• Recording radio programmes

• Providing a digest of a government department’s/health authority’s coverage in the broadcast media

• Social media monitoring, for example Facebook postings, Twitter feeds, etc

8 - Cartographic services

This Heading covers cartographic services.

Includes

• Mapping services

• Topographical surveys

• Preparation of bespoke maps

9 - Cash in transit services This Heading allows recovery on the secure transport of cash.

10 - Catering This Heading covers either the use of a private sector operator to run a government department’s or health authority’s catering function, or the use of a catering contractor to run individual events.

Includes

• Food prepared and facilities supplied by a contract catering service

• Hire of agency staff relating to that catering service

• Catering services for occasional functions

• Services associated with catering for occasional functions which form part of the supply of catering e.g. staff to serve food and drink, serving alcoholic beverages, hire of additional equipment (mobile kitchens, etc) to supplement the on-site facilities

• Vending machines when supplied as part of a catering contract

• Catering services for official functions e.g. receptions, dinners and banquets

Supplies of catering for NHS patient care

11 - Ceremonial services This Heading refers to services supplied by a private firm for the provision of a

ceremonial service.

Annex 1 v3-01.doc

of 51

Ceremonial service takes its every day meaning and would include for example, opening of a new public building or hospital wing.

Includes

• Erecting seating and stands for dignitaries and the general public

• Putting up flags and bunting

• Hire of portable toilet facilities

• Putting up and dismantling crowd control barriers

• Hire of PA systems

• Laying the ‘red carpet’

Excludes

Recovery on goods, for example the purchase of:

• Flags

• Flowers

• Red carpet

• Food or drink for hospitality purposes

• Fireworks that are to be used in a display

12 - Childcare services This Heading covers childcare services.

Includes Recovery of VAT incurred on the provision of crèche facilities or

holiday play schemes operated by government departments or health

authorities for the benefit of their own employees. This includes VAT charged by

a private body with which government departments or health authorities

contract with to provide these services

Excludes

• Crèche facilities provided by a nursery/play group registered under the

Children’s Act 1989 - as these supplies are exempt from VAT

• Management of child care vouchers

Additional Information

The provision of crèche facilities is normally exempt from VAT, therefore before

making a claim under this Heading you should check the invoice to see whether or

not VAT has been charged.

13 - Collection, delivery and distribution services This Heading covers collection, delivery and distribution services in relation to

postal and courier services.

Annex 1 v3-01.doc

of 51

Includes Services provided by couriers, Rail Freight, Federal Express, UPS etc.

The VAT incurred would be refundable under the Contracted-Out provisions,

regardless of the nature of the item or items being collected, delivered, stored or

distributed

• Royal Mail services where they are subject to VAT

• Courier services used for the delivery of specimens, materials, papers, etc

Excludes

• The VAT on delivery charges incurred when you purchase goods cannot be

reclaimed under the Contracted Out Services as this supply is part of a single

supply of delivered goods

14 - Computer services supplied to the

specification of the recipient

Annex 1 v3-01.doc

of 51

This heading applies to services supplied to a government department or NHS

body in its procurement of an IT system to its own specifications or to specifications dictated by the government or NHS.

The origins of this heading lie in the outsourcing of entire IT systems by central government to the private sector. For this reason, the heading does not cover in isolation the procurement of off-the-shelf software or web design.

Because of the fast pace of technology, this heading is not intended to be restricted to past practices, but instead to include modern methods of supplying an entire IT system. This may not now involve using a single outsourced provider, or outsourcing all aspects of the IT system. What is important is that the department or NHS trust requires an IT system designed to its specifications (or to specifications dictated by the government or the NHS) and this is mainly provided through outsourcing. Whether ownership of the hardware is or is not in the public sector, whether there is one supplier or several suppliers, whether the servers are or are not remote, does not affect this basic position.

When we say “to the specification of the recipient” we mean that the

system/software should not be simply designed and built in order to meet certain perceived needs. The specifications must have either been specifically dictated to the supplier, or be of such specific requirements that it would have no application outside of the Government or NHS. For instance, if a system can be used by private healthcare providers, it would not meet the rule and recovery would not be possible. For that reason, many of the patient records systems that are being supplied are unlikely to be recoverable.

Provided that the supply received is an IT system designed to the users

specifications, this heading applies even though some components of the package

would – if supplied in isolation – be excluded from the heading. Thus, for example,

where a department or NHS trust requires such an IT system and outsources its

provision to several contractors, possibly retaining the project management in-

Annex 1 v3-01.doc

of 51

house, in this situation the contracts and in-house project management are components of the procurement of the IT system. The only exception is telephony, which is always excluded.

The following examples of what is included and what is excluded from heading 14

should be read in conjunction with the definitions, interpretative notes and additional information at the end of this guidance.

Includes

• The provision by one or more suppliers of an IT system either using the recipients’ own hardware or hardware provided by a supplier of qualifying services that form a part of the infrastructure. At one time the requirement was for the system to be fully managed by the outsourced provider, but now it is accepted that the management function can be retained in-house (or, in the case of existing contracts, returned in-house)

• Software support which forms part of an IT system package

• The development, implementation and support of bespoke software

• Hosting Computing Services, Archiving Communication Services, Data Communications Services, Desktop Communications Services, for example Picture Archiving Services (PACS), Ethernet cable/Data lines and Cloud computing when supplied as part of an IT system

• Computer consultants and other professionals where they are under the control and management of an outsourced provider and form a part of the overall procurement of an IT system designed to the department’s or trust’s specifications.

• License fees (including those delivered electronically, or delivered in a package containing a voucher or code to be redeemed electronically):

o supplied as an integral part of an IT system, whether for bespoke or

off-the-shelf software;

o for bespoke software

The Tax Centre of Excellence (TCoE) has published a joint TCoE, HMRC and

HMT “Agreed Principles – IT Licences” document at http://taxcentreofexcellence.uk/, which provides examples and clarification.

Excludes

• The supply, license and/or support of off-the-shelf software

• The hire, installation or purchase of hardware alone

• Line rental as a separate supply

• Telephony, which includes Voice Over Internet Protocol (VOIP) and videoconferencing

• Blackberry mobile phones, which are a telephony service

• Hire of computer consultants to add expertise to in-house IT teams and controlled or managed by those teams. This is a supply of staff rather than of IT services.

• Web design where purchased as a stand-alone supply – this may be eligible

for recovery under Heading 49

http://taxcentreofexcellence.uk/


Annex 1 v3-01.doc

of 51

Annex 1 v3-01.doc

of 51

Definitions and interpretative notes

‘An IT system’

An IT system itself can be made up of several packages which could be provided

by different suppliers, however as long as the packages, when linked together

form an entire IT system that has been built to the recipient’s specifications, this

would still qualify for recovery under this Heading.

HM Treasury’s view is that an ‘IT system’ could be a stand-alone system or equally

the system may form part of a larger IT system to be linked with the department’s

or NHS body’s overall IT network.

Therefore, VAT refunds under this heading are permitted where the recipient contracts with more than one supplier, provided the services across the contracts join together to provide an IT system. An example of this would be smaller contracts which, when joined together, form a tower IT system. This would also include any costs in relation to the build and support of the bespoke software which is provided as part of the contract.

VAT on qualifying services received as part of a wider supply that includes nonqualifying services or goods, for a single all-inclusive charge, is not eligible for refund unless the qualifying services are supplied under a separately ordered, negotiated and contracted agreement. The exception to this is where a government department or NHS body receives an IT system which includes telephony; in this instance, HM Treasury (HMT) require the VAT incurred on the contract to be apportioned between telephony and IT services. The VAT which relates to the IT services can be recovered under Heading 14 whilst any VAT incurred on telephony services cannot be recovered.

A VAT refund is permitted where goods are received as an integral part of a supply of qualifying services, are included in the contract for the qualifying services, and are ancillary to the qualifying services supplied.

*‘Bespoke software’ *

Bespoke software includes the creation of a new software package. This includes research and development, design and consultancy services. It may also include aftercare services such as updates and helpdesk facilities.

It also includes the substantial modification of a pre-existing package of software

to meet the needs of the recipient. In such circumstances, the key to qualification

for a VAT refund will be to consider the extent of the modification. Substantial

modification would require changes that effectively create a product that is

unrecognisable from the original. ‘Customisation’ or ‘personalisation’ of preexisting

packages are unlikely to be substantial modifications – they tend to be data

management/input issues rather than actual remodelling of the software.

Non-qualifying ‘off the shelf’ software is taken to mean stock software such as

Annex 1 v3-01.doc

of 51

“Microsoft Office” packages, Sage accounting software, etc. These generally

Annex 1 v3-01.doc

of 51

require minor modification during implementation and would not be eligible for recovery under Heading 14 unless supplied as a minor part of an entire IT system.

*‘Staff’ *

Where the supplier of IT services also provides staff, and that staff remain under the direction and control of the supplier, the staff are treated as part of the provision of IT services, and costs will be recoverable under this Heading.

In modern contracting situations there are a number of scenarios that can occur.

Treasury have therefore considered that the following four situations are likely to

occur: Where IT services and staff are provided by one supplier, and the

staff are under the day to day control of the government department/NHS, this is

a supply of staff and VAT is irrecoverable.

• Where IT services and staff are provided by one supplier, the staff are under the day to day control of the supplier, and the activities delivered meet the COS14 criteria, the VAT can be recovered.

• Where the government department/NHS procure an IT infrastructure from

one supplier and IT service staff from another supplier, and those staff are

under the day to day control of one of the suppliers, the VAT incurred on the

supply of staff can be recovered in line with the guidance at ‘An IT system’

above.

• Where the government department/NHS procure an IT infrastructure from one supplier and IT service staff from another supplier, and the government department/NHS has the day to day control of those personnel, this is still a supply of staff and any VAT incurred is irrecoverable.

The important point to note, therefore, is that recovery is only possible where the staff are not under the control of the government department or NHS body. If they are under the control of any other party, and the supply is an integral part of the overall infrastructure provision, recovery is possible.

‘Day to day control’: The TCoE has published a joint TCoE, HMRC and HMT

“Agreed Principles, guidance and FAQs – COS14 Resource & Digital Expertise”

document at http://taxcentreofexcellence.uk/, which provides examples and

clarification.

15 - Conference and exhibition services



Annex 1 v3-01.doc

of 51

This Heading covers conference and exhibition services.

Includes

• A composite service which could include supplies of staff, hire of venue,

equipment, hotel accommodation, catering etc. The keyword is ‘services’ - to

qualify for recovery the government department or health authority must be

receiving more than a supply of accommodation and catering, and the services

must be in connection with their non-business activities

• Hire of exhibition space and associated services

• Hire of conference stands and associated services

Excludes

• The hire of venues alone

• The hire of hotel accommodation on its own

16 - Debt collection This Heading covers debt collection services supplied to a government department or health authority.

Includes

The provision of services by a professional debt collection

agency Bailiff services

17 - Departmental staff records and payroll

systems including administration and payment of

pensions This Heading allows recovery on the provision of services for departmental staff records and payroll systems, including administration and payment of pensions.

Includes

• Where you employ the services of outside contractors to deal with departmental personnel services, staff records and payroll systems

• Expert Actuary Services in respect of pensions

• Supplies by Civil Service Pensions and similar bodies

• Services supplied by the Government Actuarial Departments

Excludes

• Management of child care vouchers

Annex 1 v3-01.doc

of 51

18 - Employment advisory services as directed by

the Race Relations Act 1976 The Race Relations Act 1976 has been repealed, therefore under this Heading you can recover employment advisory services as directed by the Equality Act 2010.

Includes

Supplies by Civil Service Policy

19 - Engineering and related process services

This Heading has a deliberately narrow application in that it excludes computer engineering.

Includes

• Recovery on manufacturing and the related commissioning processes

Excludes

• Installation of plant

20 - Environmental protection services of the kind normally carried out for the Department of the Environment, Food and Rural Affairs This Heading allows recovery on environmental protection services of the kind

normally carried out for the Department for Environment, Food and Rural Affairs

(DEFRA).

21 - Estate management services This Heading covers property where a government department or health authority holds either the leasehold or the freehold or Scottish equivalent.

It applies where a contractor manages and operates land and/or buildings for you (the building does not necessarily have to be occupied), for example where an estate agent is responsible for arranging the payment of rents and other charges.

The supplier’s services would probably include: dealing with any repairs and maintenance, arranging cleaning, reception, security, post etc. The estate management company will usually charge a monthly fee for such services.

Excludes

Separate recharge of utilities as these are supplies of goods

Annex 1 v3-01.doc

of 51

22 - Export intelligence services This Heading allows recovery on export intelligence services.

23 - Filming, audio-visual and production services This Heading covers filming, audio-visual and production services.

Includes

• Commissioning a company to make in-house training films for example promotional videos, public awareness campaigns, etc

• Filming briefings, meetings or conferences

24 - Health promotion activities

This Heading covers health promotion activities.

Includes

Campaigns for stress awareness, giving up smoking, etc

25 - Hire of reprographic equipment including

repair and maintenance

Annex 1 v3-01.doc

of 51

Under this Heading, ‘reprographic’ takes its everyday meaning and is the process of reproducing, reprinting, or copying graphic material especially by mechanical, photographic, or electronic means.

This Heading allows recovery on the hire, rental or lease of reprographic equipment but only where the agreement or contract provides for repairs and maintenance and where the provider retains ownership and responsibility for the equipment.

Includes

• Hire, rental or lease of reprographic equipment where the charge is

calculated on a ‘copy ‘or ‘click’ charge’ basis and the provider retains

ownership of the equipment, this also includes consumables provided as

part of the ‘click’ or ‘copy’ charge

• Multifunctional Devices (MFDs) which serve as printers, photocopiers and faxes

Excludes

• Hire, rental or lease of reprographic equipment where the agreement or contract does not include repair and maintenance

• Hire of Fax machines, as these are not primarily reprographic equipment

• Consumable supplied separately, for example, toner, fixing agents and

copier

26 - Hire of vehicles, including repair and

maintenance This Heading allows recovery where a government department or NHS body enters into a contract for the supply of a vehicle/vehicles and the repair and maintenance of these vehicles by the supplier is specified in the contract.

Includes

Contracts for the hire of pool cars, company cars or other vehicles where the contract includes repair and maintenance by the supplier

Excludes

Annex 1 v3-01.doc

of 51

• Hire of vehicles alone where the contract does not include repair and maintenance, however the VAT on the separate supply of repair and maintenance will be recoverable under Heading 37


• Where you have a contract which includes both the hire of vehicles without

repair and maintenance and hire with repair and maintenance, you can only

recover the VAT in relation to the element of the hire which include repairs and

maintenance.

27 - Insolvency services The costs of Insolvency Practitioners may be recovered under this Heading only if it can be demonstrated that that they are working under contract to a government department or health authority and that their services are being provided to the government department or health authority.

In many cases insolvency practitioners are seen as providing their services to the

business under their supervision and any VAT charge is proper to that entity rather

than a government department or health authority.

28 - Interpretation and translation services This Heading covers interpretation and translation services.

Includes

• Simultaneous translation services, for example in person, at events/meetings/interviews, via telecommunication media, etc Translation of documents

• Where an interpreter is needed during the course of treatment of an NHS patient

• Sign language

29 - Issue of documents to, and control of, bingo

halls and off-course bookmakers This Heading covers the issue of documents to, and control of, bingo halls and

offcourse bookmakers.

30 - Issue of documents under Wireless and

Telegraphy Act This Heading covers the issue of documents under the Wireless and Telegraphy

Act.

31 – Laboratory Services

Annex 1 v3-01.doc

of 51

This Heading allows recovery where an NHS body or government department has

contracted out its laboratory services. Laboratory services are defined as services

of conducting scientific experiments, tests and investigations whether in a

laboratory building or via a technological process.

Includes

• Drug testing

• Forensic testing

• Managed laboratory services

Excludes

• Stand-alone supplies of laboratory consumables for example, reagents, chemicals and test tubes which are supplies of goods

• Separate lease/hire of laboratory equipment


The supply of laboratory pathology services that directly relate to the provision of

healthcare for individual patients is exempt from VAT and thus there is no VAT to

recover. This applies to all businesses that are state-regulated and supply

laboratory pathology testing services, whether they supply the services to the NHS

or to independent hospitals.

32 - Laundry services This Heading covers the provision of laundry services.

Includes

• Towel hire and cleaning and laundering of towels

• The provision of linen, which is exchanged on a regular basis for laundering, but remains the property of the company providing the service

• Cleaning and laundering of uniforms and fabrics

• Dry cleaning services

• The cleaning or redressing of wigs, for example, for cancer units

33 - Library services

Annex 1 v3-01.doc

of 51

This Heading covers the use of external libraries such as university libraries, independent academic libraries and electronic/online library services.

Includes

• Internet hosted library services which provide access to backdated journals, periodicals, medical books, etc

Excludes

• Subscriptions to publications, electronic journals, single online journals,

magazines, etc

34 - Maintenance and care of livestock and fauna in

connection with the Royal Parks

This Heading covers maintenance and care of livestock and fauna in the Royal Parks.

Includes

• Veterinary costs

• Tree surgeon’s services

• Vaccination programmes

35 - Maintenance, non-structural repair and

cleaning of buildings

Annex 1 v3-01.doc

of 51

The key to this heading is that it does not cover structural work such as the alteration of a building or the construction of an extension. The building can either be held under a freehold or a leasehold interest, but the heading does not include the service charges which are included in the lease as these are normally regarded as additional rent, and therefore further consideration for the occupation of the building.

Although in principle a ‘line by line’ calculation for each item of work is acceptable, some easements have been agreed for government departments and NHS bodies – see below:

Recovery of VAT on a line by line basis

Go through Bill of Quantity/Tender documents etc. and decide what is fullyrecoverable, non-recoverable and Pot (mixed - unable to separate).

With Preliminaries – if you have a detailed breakdown and can separately identify qualifying items (professional services, security, and so on), these can be added to fully-recoverable figure, with the rest in non-recoverable, or the whole figure can be added to Pot (mixed). This is an either/or, what you cannot do is strip out fully recoverable and add rest to Pot.

If a piece of work can be easily differentiated between fully/non-recovery - for

example, “Supply and fit 20 doors (16 replacement / 4 new)”, 80% of price can be

added to fully-recoverable and 20% to non-recoverable. If the description just says

“Supply and fit 20 doors”, this would be added to the Pot.

When this is completed, the formula to find out the provisional percentage recovery on all interim payment invoices is: Fully-recoverable ÷ (Fully-recoverable + Non-recoverable) = Percentage

Headings such as Provisionals, Overheads and Profit, Contractors margin, and so

on should be placed in the Pot; Contingencies should be ignored until the end of

the project, when it will become clear if any have been spent. Capital projects

should be reviewed annually or at the end of the project whichever is sooner.

Where work is carried out to meet H&S or fire regulations, this does not mean you

Annex 1 v3-01.doc

of 51

can just claim back everything. The work must still be listed on repairs and maintenance list to qualify for recovery.

Easements for government departments

In the case of government departments, it is acceptable to refer to government accounting principles to determine whether work is or is not structural. Work funded from running costs (revenue spending) is accepted as non-structural and therefore within the scope of this heading, whereas work funded from capital expenditure is not.

Easements for NHS bodies

Construction projects below £5000

HMRC have agreed with the Department of Health that construction works costing under £5000 (excluding VAT) may be treated, as repairs and maintenance and the VAT element are refundable under the Contracted-Out provisions.

The Department of Health Circular EL (90) P64 defines such work as “individual

works schemes for the initial provision, extension improvement or adaptation

(including upgrading), renewal, replacement or demolition of buildings, building

elements (e.g. roofs), external works, engineering services or plant”.

Each project, however, must be complete and self-contained. A large project cannot be split into individual elements to bring the cost down, per element, to below £5000. It will only apply where the project is undertaken in its own right and not as part of a larger project.

Capital Building Projects

By Capital building projects, we mean those projects that involve building and construction works which will normally take weeks/months or even years to complete. These projects will often include costs for works that are either eligible or ineligible for VAT recovery.

Capital building projects are dealt with under the COS rules; however, VAT is only recoverable on the repair & maintenance costs not replacement. On projects where there are alterations, extension, modification there would be little scope for recovery as this ceases to be repair and maintenance.

On new builds, only professional services may be recovered where the supply is outside of the main contract and is to the NHS body direct.

For example, where you are having an extension built, and you are knocking

through from an existing building, there would be little scope to recover VAT on

making good damaged walls/plaster as this would be considered disturbance

works. However, if you were taking advantage of repairing e.g. wires, plumbing on

the existing building at the same time, this would be recoverable.

Annex 1 v3-01.doc

of 51

How to calculate VAT recovery

NHS bodies can determine the correct VAT recovery on capital building projects in two ways. They can either go through the relevant documents in their possession such as bills of quantity/ schedules of work etc. on a ‘line by line basis’ determining which works are eligible for VAT recovery and then recover these costs subject to the normal VAT rules or NHS bodies can use the ‘banding scheme’ which involves simply determining what type of project is being undertaken and recovering that % applicable to the project invoices/ interim certificates see below.

Recovery of VAT using the ‘banding scheme’

To reduce the burden of the tax further, NHS bodies have the option to determine simply the element of VAT recoverable on contracted out services on those capital-building projects of a total cost of up to £15,000,000. Having decided the type of project involved from the following list, the recovery rate shown is applied to the invoiced VAT incurred on the project for inclusion on the monthly VAT 100 and accompanying VAT21.

PROPORTION OF

TYPE OF

DEFINITION VAT

PROJECT

RECOVERABLE

Complete new construction from scratch

or making use of the foundations of an

New build existing building, where the whole of the 0%

former building has been demolished to

ground level.

Where a building is enlarged or extended

Extensions and that enlargement or extension 5% creates new space.

Works to an existing building where major

work has taken place to the fabric

Major Alterations of the original building including the 20% replacing of

much of the internal/external configuration.

Work to an existing building where the

alterations are incidental to and have

Minor Alterations 40%

occurred because of repair/maintenance

work.

Annex 1 v3-01.doc

of 51

This is general upkeep to and

Refurbishment /

refurbishment of existing buildings where

Repair and 75% the works do not result in any

alteration maintenance or additions.

These bandings apply only to actual construction works. Subject to the normal rules, NHS bodies may continue to recover VAT incurred on supplies received directly of professional services (for example, architects).


Examples of what is included or excluded under Heading 35 can be found at

VATGPB10435.

36 - Maintenance and repair of civil engineering

works Under this Heading civil engineering takes its everyday meaning and includes for example bridges, drains, roads, car parks, footpaths etc.

Excludes

• Repair and maintenance of road schemes. This work falls under Heading 6

New civil engineering projects • Supplies carried out under section 278 agreements. This work falls under

Heading 6 • Winter road gritting and cleaning services

37 - Maintenance, repair and cleaning of equipment,

plant, vehicles and vessels



Annex 1 v3-01.doc

of 51

This heading allows government departments and NHS bodies to recover VAT on:

Repair, maintenance and cleaning of equipment, plant, vehicles and vessels

that they own, and/or

• Repair, maintenance and cleaning of equipment, plant, vehicles and vessels that are leased. This is providing that the repair and maintenance work is supplied under a separate contract or agreement from the lease but it does not have to be made by a different supplier. Where the lease and maintenance are provided by the same supplier, the contracts/agreements must not be interdependent on each other and must be separately enforceable.


• For the purposes of COS recovery, the term vessels includes ships and aircrafts and the term equipment includes computer equipment

• VAT incurred on the leasing or hire of equipment, plant, vehicles and vessels is

not eligible for recovery. The only exceptions to this are Headings 25 ‘Hire of

reprographic equipment including repair and maintenance’ and Heading 26

‘Hire of vehicles, including repair and maintenance’. In both these cases, the VAT is only recoverable on contracts that provide for the supply of the equipment/vehicles together with full repair and maintenance services

Examples of what is included or excluded under Heading 37 can be found at VATGPB10435.

38 - Maintenance and repair of statues, monuments

and works of art This Heading covers the maintenance and repair of statues, monuments

and works of art. Includes

• Cleaning

• Restoration costs

• Removal & relocation costs

Excludes

• Expenses relating to the design and installation of new monuments

39 - Medical and social surveys This Heading is specifically designed to allow recovery on surveys which were

previously carried out in-house which are now outsourced to private sector

providers and where the results are to be used for non-business activity.

40 - Messenger, portering and reception services



Annex 1 v3-01.doc

of 51

This Heading covers messenger, portering and reception services.

Includes

• Collection and distribution of internal mail by a private company

• Patient appointment/reminder services

• Portering services such as the movement of patients and equipment around hospitals

• Movement of corpses by funeral directors to or from the hospital site

Excludes

• The hire of telephone equipment/telephone lines or switchboard equipment alone

• Hire of agency staff to supplement in-house services during peak times or to

cover leave

41 - Nursing services This Heading is intended to allow recovery on nursing services in its widest sense

and there is no stipulation that the nursing staff have to be providing medical care.

Annex 1 v3-01.doc

of 51

The Royal College of Nursing define nursing as “the use of clinical judgement in

the provision of care to enable people to improve, maintain, or recover health, to

cope with health problems, and to achieve the best possible quality of life,

whatever their disease or disability, until death”.

Includes

• Situations where you are charged VAT on the provision of nursing services or agency nursing staff, this would include:

o All grades of registered bank nurses, working on wards across the

NHS o Healthcare Assistants

o Midwives and midwifery assistants o Phlebotomists o Theatre Scrub

nurses

o Nurses employed by the 111 service

o Operating Departmental Practitioners (ODPs) where due to the changes in the nature of their role, they now provide a nursing services. Previously ODPs were excluded from Heading 41 as they were not providing a nursing service.

Excludes

• Other types of medical professionals such as doctors, locums

• Other healthcare professionals such as ambulance paramedics


You should not assume that there is a VAT element included in the charge made

to you for nursing services, as the supply may be exempt from VAT. You should

check the suppliers invoice to check whether VAT has been charged.

42 - Office removals This Heading covers services involved with office removals.

Includes

• Office relocation contractors

• Provision of removal services

• Crate hire when part of a removal contract

• Contractors moving office accommodation, for example from one floor to another

Excludes

• Crate hire alone

Annex 1 v3-01.doc

of 51

43 - Operation and maintenance of static test

facilities, engineering and support services and

test range industrial support and security/safety

services including those acquired for the purposes

of research and development This Heading covers operation and maintenance of static test facilities,

engineering and support services and test range industrial support and

security/safety services including those acquired for the purposes of research and

development.

44 - Operation and maintenance of stores depots This Heading allows recovery where you employ an external contractor to operate and maintain your stores depot.

Includes

• Monitoring stock levels

• Dealing with requisition requests

• Contracting out the management (and running) of your stocks of items and equipment - such as dressings, medicines, lotions and stationery used in the provision of non-business healthcare.

Excludes

• The supply of the goods being stored


Where you have a single contract for the operation and maintenance of your

stores depot and for the supply of the goods, VAT can only be recovered on the

service element of the contract where this is shown as a separate charge on the

invoice.

45 - Operation of hospitals, health care

establishments and health care facilities and the

provision of related services

Annex 1 v3-01.doc

of 51

This heading concerns the operation of healthcare premises that have face-to-face dealings with patients. The contractor does not have to provide, and is unlikely to be providing, healthcare. Thus, the focus of the heading is on the situation where the contractor provides a fully functioning building or facility within which medical and nursing professionals can treat and care for their patients. For example, the contractor may provide full facilities management support, IT support, catering, cleaning and security using its own employees (or the services of companies it sub-contracts work to). An agreement that consists of an ordinary premises lease with standard communal services only will not be covered by this Heading.

The origins of this heading lay in the type of PFI arrangement that was prevalent in

the 1980s and 1990s. Over time, this type of arrangement has changed, either in

terms of the level of services provided or the facility in which they are provided, but

the principle remains unchanged – the contractor provides a sufficient level of

services and support within the building or facility for the NHS (or other healthcare

Annex 1 v3-01.doc

of 51

provider) to treat its patients. It covers PFI, PF2, Scottish Hub Procurement Arrangements, LIFT and non-PFI situations.

A hospital, health care establishment and health care facility is the building or facility which enables the medical and nursing professionals to treat and care for their patients and includes:

• An entire hospital complex of buildings

• Part of a hospital complex of buildings

• A discrete part of a hospital, such as a ward, a theatre suite, a radiology department, a renal dialysis suite, a diagnostic suite or an MRI unit

• An off-site facility that provides services which would normally be carried out in a hospital or health care establishment, for example an off-site facility for renal dialysis or diagnostic purposes

• Non-residential mental health facilities which are part of the healthcare offered by the NHS body

Includes The ancillary provision of equipment together with the service of

operating and maintaining that equipment, for example heating, cooling and

ventilation equipment; fire protection equipment; specialised lighting; nurse call

systems; and medical gas supply piping

• Utilities when provided as a part of the whole package under the same contract and paid for within the single unitary charge - the utilities may be invoiced separately to the rest of the charges

• Hyperbaric chambers/mobile theatres, as long as these are supplied on a fully managed and serviced basis

Excludes

• The hire of equipment alone

• The separate supply of utilities

46 - Operation of prisons, detention centres and

remand centres, including medical services

Annex 1 v3-01.doc

of 51

The origins of this heading lie in the outsourcing of the running of a prison to a private sector company - custodial services, rehabilitation and education, building maintenance, catering etc. However, it can extend to discrete activities within a prison.

Includes

• Operation of prison shops

• Prisoner transport

• Operation of prison hospitals

Excludes

Hostel accommodation

47 - Passenger transport services The hire or lease of a vehicle without a driver would not be covered under this Heading, but may be eligible for a refund under Heading 26.

Includes Taxi firms that supply taxis to staff on request provided the

government department or health authority has entered into a contract with

the firm and receives a tax invoice, e.g. late night car services

• Chauffeur driven cars provided the government department or health authority has entered into a contract with the firm and receives a tax invoice

• Services of an outside contractor to transport passengers/patients

• Where a hospital hires or leases a vehicle with a driver for transporting inpatients, outpatients, hospital staff or other individuals (e.g. private specialists/consultants), providing it is in connection with the non-business activity of the provision of NHS health care

Excludes

• Public transport costs - these are already zero-rated

• Road tax

• Passenger insurance

• Staff members hailing cabs in the street or picking up a taxi from a taxi rank

• Passenger transport services used for the transport of private patients or for a

consultant providing health care to a private patient would not be eligible for a

refund as it would be in connection with an exempt business activity and the

normal VAT rules would apply

48 - Pest control services

Annex 1 v3-01.doc

of 51

This Heading allows recovery on pest control services.

Includes

• Setting of traps

• Spraying insecticide

• Laying down poison

• Removal of dead rodents

• Disinfestation

Excludes

• The purchase of goods such as products designed for pest control, for example

poisons, traps, etc

49 - Photographic, reprographic, graphic and

design services

This Heading allows recovery on contracted out photographic, reprographic, graphic and design services.

Includes

• Hire of a photographer

• Design & printing of annual reports

• Bulk copying services

• Design and redesign of a website

Excludes

• Purchase of photocopiers etc.

• Printing of business cards and headed stationary – these may be recoverable under Heading 61

• Printing of office signage

50 - Preparation and despatch of forms This Heading covers the preparation and despatch of forms.

Includes

Design, printing and mailing of forms, providing these services are provided

within a single contract

51 - Press cutting services

Annex 1 v3-01.doc

of 51

This Heading allows recovery where you use an outside contractor to provide you

with a physical or electronic press cutting service, for example you are supplied

with copies of all articles in the national and/or local press of particular relevance

to your government department or health authority.

52 - Professional advice or opinion on

departmental efficiency or policy issues, legal

advice or opinion and internal audit Note: This heading is currently under review with HM Treasury. Government departments and NHS bodies should continue to use the guidance detailed below until further details are provided by HMRC.

Government departments

The wording of this heading was amended in 2008. It used to read “Professional

services, including those of any manager, adviser, expert, specialist or consultant”,

but the change clarified that the scope of recovery under the heading is confined to

provision of advice or information on departmental efficiency, policy development,

legal advice or opinion and internal audit.

Annex 1 v3-01.doc

of 51

Includes

• Internal audit reports.

• Legal opinions from solicitors.

• Hire of consultants to provide advice on efficiency issues or comment on the viability of new departmental initiatives.

Excludes

• The hire of a consultant to work as part of the Department.

• Research - this is covered by Headings 20, 58, 59, 66 or 74.

• The service of actually putting something into effect, as opposed to merely advising on a matter. For example, the services of a professional who is brought in to advise on AND then implement a new initiative.

• Staff secondments - because this involved contracting in staff to work alongside.

• Specialist staff hired to provide “holiday/ maternity cover” for key staff members.

• Hire of accountants to carry out tax health checks.


HM Treasury wrote to Government Departments on the 14 April 2014 about

Shared Service Arrangements and refunds under this heading for Non-Criminal Legal Services. In so far as the Treasury directs HMRC in individual cases, VAT can also be recovered on other non-criminal legal services. There have so far been no such directions.

NHS bodies

VAT is recoverable on the professional services of managers, advisers, experts, specialists and consultants in providing advice or information on how to put something into effect. The eligible services are therefore of an advising nature, rather than of implementing a change, taking action following a recommendation, etc. In relation to building works and construction, the professional fees of architects and structural engineers are included, as is consultancy advice on planning site layouts and the services of solicitors, valuers and surveyors. VAT is eligible for a refund irrespective of whether the fees relate to repairs and maintenance or new construction or improvements or refurbishment etc.

This category is not restricted to professional fees in connection with construction

work. It also covers professional fees such as those in connection with computer

consultancy work, including contract software development.

53 - Provision under a PFI agreement of

accommodation...

Annex 1 v3-01.doc

of 51

Provision under a PFI agreement of accommodation, or office or other

governmental use, together with management or other services in connection with

that accommodation

This heading covers PFI arrangements under which government departments/NHS bodies are supplied with fully serviced and managed accommodation by a single PFI provider. The most distinct element will be that risk is transferred from the government departments/NHS body to the PFI provider. Consequently, the heading does not include leases granted by commercial landlords, even where they are landlord repairing and insuring leases.


• Recovery under this heading is only allowed on utilities when provided as part of the supply of PFI accommodation and where the cost is subsumed within the single unitary charge. This is seen as a necessary incidental cost of providing the accommodation.

• Utilities provided outside the PFI charge will not qualify for relief under this

Heading.

54 - Publicity services This Heading allows recovery on publicity services.

Includes

• Advertising campaigns other than recruitment adverts (which are covered by heading 57)

• The use of a private publicity agency for dealing with the media Press releases

• Digital publicity services, for example illuminated portable posters and video walls

Excludes

• Commissioning promotional items such as mugs, T-shirts, stickers etc. This is a supply of goods for VAT purposes and as such falls outside the scope of the Direction

• The direct placing of an advertisement, for example in a newspaper

55 - Purchasing and procurement services

Annex 1 v3-01.doc

of 51

This Heading allows recovery on purchasing and procurement services i.e. the procurement service charge.

Includes

• Negotiating procurement contracts

• Management and co-ordination of bulk orders

• Cloud based procurement services

• Government procurement services

• Where you use a buying agent or private firm to carry out your purchasing, then any VAT incurred on the buying agents services would be eligible for recovery under this heading

Excludes

• The actual cost of the goods procured

56 - Radio services This Heading allows recovery on radio services.

Includes

• Radio broadcasting

• Radio bandwidth

• Contracting out of services connected to the running of a hospital radio

Webcasting

• Provision of radio communications network for NHS ambulance Trusts and handsets when supplied as part of the communications network

Excludes

• Purchase of radios or radio equipment alone

• The supply of car radios or radio masts

57 - Recruitment and relocation of staff and other

related services

Annex 1 v3-01.doc

of 51

This Heading allows recovery on recruitment and relocation of staff and other related services.

Includes

• Security vetting checks undertaken on employees including Disclosure and Barring Service (DBS) checks

• Staff relocation expenses where the department commissions the removal company

• Staff recruitment advertising commissioned via a recruitment agency

• Civil Service Resourcing

• If you use an agency to arrange for the recruitment of staff, the VAT would be refundable under this heading. This would include services provided as part of a recruitment drive

• You may incur VAT, which would be eligible for a refund under this category, if, for example, you were to open a new hospital or move to a new building and used a private company to deal with the relocation of the staff

Excludes

• VAT incurred on removal firms hired by staff

Placing recruitment adverts in a newspaper or on internet recruitment websites


VAT incurred in respect of the recruitment of canteen staff, for example, would

only be eligible for a refund under these provisions to the extent that it relates to

the supply of catering for NHS in-patients as part of the provision of NHS Health

care.

58 - Research, testing, inspection, certification and

approval work for the Health and Safety Executive This Heading covers research, testing, inspection, certification and approval work for the Health and Safety Executive (HSE).

Devolved administrations discharging functions on behalf of the HSE may recover

VAT on contracted out services under this Heading.

59 - Scientific work of the kind normally carried out

for the Department of the Environment, Food and

Rural Affairs and the Food Standards Agency

Annex 1 v3-01.doc

of 51

This Heading allows recovery for scientific work of the kind normally carried out for the Department for Environment, Food and Rural Affairs and the Food Standards Agency.

Includes

• Testing contaminated food to identify strains of bacteria e.g. salmonella

• Detection and verification of disease in animals e.g. BSE

• Detection and verification of plant disease e.g. Dutch elm disease

Inspection of diseased animal carcasses


This Heading may be used by departments in the devolved administrations if they

have taken over responsibility for work undertaken by DEFRA or the Food

Standards Agency.

60 - Security Services This heading allows recovery for the security services.

Includes The provision of security guards and staff security surveillance

equipment (CCTV, surveillance cameras), security patrols and the secure

transport of equipment

Lone worker monitoring of staff

Excludes

• Purchase of security equipment only would not be eligible as this would be a supply of goods

• Security vetting - this may be recoverable under Heading 57

• Hire of security staff to supplement in-house security teams, for example to provide holiday cover

• VAT incurred on the repair and maintenance of security equipment - this may

be recoverable under Heading 37

61 - Services of printing, copying, reproducing or

mailing of any documents or publications,

including typesetting services

Annex 1 v3-01.doc

of 51

Includes

• Post opening services

• Franking

• Labelling services including printing of bespoke forms, labels, cards, reports, letterheads etc. (bespoke means from scratch designed specifically for the government department/NHS body)

• Parcel X-raying services

• Photocopying services supplied by outside firms

• Services of mailing agencies

• Printing services or reproduction of documents or publications for example, annual reports

• Typesetting services

• Micro filming and microfiche services

Excludes

• Post box hire

• Shredding machines Franking machines


• In the case of printing services, although the supply of the paper is a supply of goods, it is considered an intrinsic part of the service being provided (for example, it is impossible to receive the service of printed letterheads without the paper on which the letterhead is printed). Therefore, the VAT would be eligible for recovery on the total contract price, which will normally include that of typesetting, paper and the use of the printing or embossing machinery.

• The initial supply of signs and names badges (also the complete replacement

of) is not eligible for recovery, as they are seen as goods. Signs replaced

because of government departments/NHS bodies merging would be

recoverable, as would repairs to existing signs.

62 - Share Registry Survey This Heading allows recovery on the share registry survey.

63 - Storage, distribution and goods disposal

services

Annex 1 v3-01.doc

of 51

This Heading covers both physical and electronic storage and distribution

services as well as physical goods disposal services. Includes

• Records sent for archiving or destruction

• Storage of detained or seized items

• Secure disposal of seized items

• Accommodation of seized or detained animals in zoos or boarding kennels

• Storage of employees’ possessions when they are relocated

• Incineration services

• Secure bulk shredding services

• Call-off stock


Changes were introduced by the Finance Act 2012, which required the standard rate of VAT to be applied to supplies of storage facilities with effect from 1 October 2012, further details can be found at VATLP17550 (external users can find the guidance at http://www.hmrc.gov.uk/manuals/vatlpmanual/VATLP17550.htm)

A definition of storage can be found at VATLP17600 (external users can find the

guidance at http://www.hmrc.gov.uk/manuals/vatlpmanual/VATLP17600.htm)

64 - Surveying, certification and registration in connection with ships and relevant record-keeping and verification, issue of certification, cards,

discharge books and campaign medals to seamen This Heading covers surveying, certification and registration in connection with

ships and relevant record-keeping and verification, issue of certification cards,

discharge books and campaign medals to seamen.

65 - Training, tuition or education There is no general restriction under this Heading. This includes on-line training and training provided for example by lecturers, external organisations etc.

You should note that education and vocational training is exempt from VAT (so

there is no VAT to recover) if it is provided by one of the ‘eligible bodies’ listed in

Notice 701/30: “Education & Vocational Training”. In practice these are:

1. Schools for the under-19s

2. Universities

3. Further and Higher Education colleges

4. Other public bodies

http://www.hmrc.gov.uk/manuals/vatlpmanual/VATLP17550.htm




Annex 1 v3-01.doc

of 51

5. Non-profit making bodies that reinvest surpluses of income back into the courses they provide

Includes

• VAT incurred on costs which relate to non-business training activities

Excludes

• VAT incurred on separate supplies of accommodation, meals and room hire

66 - Transport research of the kind normally

carried out for the Department for Transport This Heading allows recovery on transport research of the kind normally carried out for the Department for Transport.

Departments in the devolved administrations which carry out functions delegated

to them by the Department for Transport may recover VAT incurred on transport

research under this Heading.

67 - Travel services, excluding hotel

accommodation and fares This Heading allows recovery on travel services but excludes hotel accommodation and fares.

Includes

• Travel arrangements provided by an external booking agency

• Charges for use of VIP lounges at airports and stations

Excludes

• Public transport fares as these are zero-rated

• VAT paid by third parties in respect of taxis and hire cars. The recovery of VAT

on hire cars and taxis depends on the arrangements with the provider and who

is receiving the supplies, the government department/health authority or the

individual

68 - Travel and transport surveys, including traffic

census counts This Heading covers travel and transport surveys, including traffic census counts.

69 - Typing secretarial, telephonist and clerical

services including agency staff This heading covers the outsourcing of typing, secretarial, telephonist and clerical

service functions. It does not include the hire of typists, secretaries, administration

Annex 1 v3-01.doc

of 51

staff and agency staff, for example to fill short-term vacancies or supplement existing staff levels during busy periods.

The words ‘including agency staff’ needs to be read in the context of the whole sentence, rather than in isolation. The agency staff referred to in the heading are those of the company supplying outsourced typing, secretarial, telephonist and clerical services.

Includes

• Provision of typing services by a word processing bureau

Excludes

• Secondees

• Employee expenses

• Hire of telephones, telephone lines, switchboard equipment etc.

• The hire of agency staff - for example, to fill long-term or short-term vacancies

70 - Waste disposal services This Heading allows recovery on waste disposal services.

Includes

Collection and waste disposal services such as:

• Refuse collection

• Trade waste

• Feminine hygiene services

• Clinical waste

• Recycling services

• Removal of ash, incineration services and sludge disposal

• The supply of incineration waste products, or for the use or hire of incineration

facilities

• The removal, conveyance, treatment or disposal of the contents of cesspools, septic tanks or similar receptacles

• Hire of rubbish skips and wheelie bins, where full containers are exchanged for empty ones by an outside firm

Excludes

• Purchase of waste disposal equipment as this is a supply of goods

• Disposal of construction waste in the course of repair & maintenance, which

may be incorporated within Headings 35-37

71 - Welfare services

Annex 1 v3-01.doc

of 51

This Heading refunds VAT incurred on outsourced welfare services supplied only

to staff members of the Government Department or health authority.

Includes:

• Staff support services

• Counselling services provided to staff, for example in the aftermath of major incidents

• The provision of care, treatment or instruction designed to promote physical or mental well being

Exceptions

However, there are two exceptions to the staff only rule, where the Government Department or health body also has a duty of care for other individuals:

• Prison inmates, and

• Hospital inpatients

In these instances, the definition of ‘welfare’ has a wider application, and therefore includes the provision of social work where necessary. Nevertheless, this recovery is only allowable to the point that the recipient is still an inmate or inpatient. Once the recipient ceases to be such, any continuing services supplied to them, and paid for by the Government Department or health body, ceases to be recoverable and is simply an overhead of that organisation


Many of these educational welfare services will be exempt from VAT so there will

be no VAT to recover.

72 - Career guidance, mentoring, counselling and other related services to help people in to work or to retain work as part of the DWP/Jobcentre Plus Employment Programme, provided under sections 2 and 9 of the Employment and Training Act 1973

Although this Heading refers to the DWP and to an English statute, it is to be read

as including any equivalents in Northern Ireland, Scotland and Wales.

73 - Services relating to Action Teams for Jobs and

Employment Zones The old Heading which allowed recovery on ‘mentoring and counselling to help

people in to work as part of the New Deal and ONE Programme’ has been

withdrawn. This is because activities which used to fall under this Heading have

largely been absorbed in to the newly reworded Heading 72.

Annex 1 v3-01.doc

of 51

74 - Original research undertaken in order to gain

knowledge and understanding Whilst there is no general restriction under this Heading, the term ‘original

research’ is interpreted as meaning research that:

a) Involves surveys, field tests or new research design thinking, interviews or observation conducted specifically in relation to the subject of the research (as opposed to merely collating existing data); and

b) Extends to secondary data analysis, interpretation (which may include

options and/or recommendations) or a systemic review of evidence (rather than

mere data gathering and recording)

75 - Inspection of woodland sites for approval of

felling licence applications and of timber

imports/imports using timber packing to prevent

entry of foreign tree pests and diseases This Heading covers inspection of woodland sites for approval of felling licence

applications and of timber imports/imports using timber packing to prevent entry of

foreign tree pests and diseases.

76 - Probation Services delivered under the

Criminal Justice and Court Services Act 2000 This Heading now applies to the Offender Management Act 2007.

Annex 1 v3-01.doc

of 51

Annex A- Examples of items that are eligible for

recovery under COS Headings 35 and 37

Please note that this list is not exhaustive. If you are uncertain whether or not the

works undertaken is eligible for VAT recovery please seek advice from HMRC.

Alarms

COS

DESCRIPTION RECOVERY

HEADING

Repairing existing fire/burglar alarms Yes 35

Installation of fire/burglar alarms No

Extension to current systems No

Repair by partial replacement of parts within existing

fire/burglar alarm Yes 35

The complete replacement of an existing system

Asbestos

DESCRIPTION RECOVERY COS HEADING

Removing asbestos Yes 35

Sealing in asbestos Yes 35

Ceilings

No

DESCRIPTION

COS

RECOVERY

HEADING

Repairing existing ceiling/suspended ceiling Yes 35

Replacing existing damaged tiles in same location

(within existing grids structure) Yes 35

Forming fire breaks in ceiling voids No

Construction/installation of new ceilings/suspended

ceilings No

Complete replacement of suspended ceiling structure No

Cleaning

DESCRIPTION RECOVERY COS HEADING Contract

cleaning Yes 35

Annex 1 v3-01.doc

of 51

Construction

COS


HEADING

Building new cool room No

Construction of a new room No

Building new extension No

Major building improvements No

Installation of a new damp proof course No

Installation of a silicone based injection No

Single supply of scaffolding No

Structural repairs not traditionally performed in-house, as No

the work requires highly specialised skills

Complete replacement of central heating and air No

conditioning systems

Conversions

COS


HEADING

Converting an office space from small offices to open No plan or vice

versa

Decorating

COS


HEADING

Repainting and decorating existing walls, windows etc to Yes 35 restore decorative order

Re-painting existing external structure Yes 35

First time decoration No

Resealing against damp and draughts

Doors

Yes 35

COS


HEADING

Fitting fire doors in corridors to form a fire break No

Annex 1 v3-01.doc

of 51

Widening doors to allow wheelchair access No

Blocking up old/existing doorways No

Installing new doors/door frames where none existed No previously

COS


HEADING

Installation of automatic/electric doors No

First time fitting of fire doors in new buildings/

extensions No

Fitting fire doors in new partitions No

Repairing by replacing existing doors/fire doors/ door

frames (see Note) Yes 35

Replacing existing doors with fire doors (see Note) Yes 35

Note: Exceptions to normal COS rules, where HMRC accept the concept of repair by

replacement for the listed items only.

Electrical

Electrical works would include items such as installation of luminaries, general

lighting, small power, nurse call systems, electrical connections to other systems.

VAT recovery will be dependent upon the context of the specific job being

undertaken - for example, if purely refurbishment, more scope expected for VAT

recovery. If major alteration/reconfiguration, limited scope for recovery.

COS


HEADING

Extension of wiring into new areas No

Installation of new emergency lighting/fire signs No

Installation/replacement of Building Management System No

Installing new/additional wiring and/or sockets No

Installing new/additional wiring and/or light fittings No

Installing new/addition cables/wiring for telephone/data

No lines

Complete removal and replacement of wiring back to No

distribution boards

Repair by replacing existing wiring/cabling, individual

sockets and light fittings, if in exactly the same location Yes

(see Note)

35

Portable Appliance Testing (PAT) Yes 37



Annex 1 v3-01.doc

of 51

Equipment/parts

COS


HEADING

Sterilisation of instruments and equipment Yes 37

Spare parts which are provided as part of the eligible

repair and maintenance services Yes 37

Maintenance of security equipment

Fire Escapes


Replacing fire escapes No

Repairing fire escapes Yes 35 Building new fire escapes No

Flooring

Yes 37

COS


HEADING

Breaking up existing concrete floors and subsequent Yes relaying at a slight different floor level

Repairing existing stuck down flooring by rescreeding and

35

resurfacing bonded fitted flooring, including stuck down carpet, carpet tiles, floor tiles and vinyl

Replacing worn flooring with the same type of covering,

Yes 35

such as replacing carpet with carpet, linoleum with

linoleum, and so on

Yes 35

Supplying first time flooring No

Installing plywood base to level floor No

Upgrading worn floor covering, for example replacing linoleum with carpet, or replacing carpet with wooden flooring

Grounds

No

COS


HEADING

Maintenance of grounds and gardens adjacent

buildings Yes 35

Gardening Yes 35

Grass cutting Yes 35

Annex 1 v3-01.doc

of 51

Tree surgery Yes 35

Landscaping/redesigning grounds No

Incinerators

COS


HEADING

Repair of incinerator Yes 37

Installing new incinerator No

Construction/extending height of chimney No

Replacement of incinerators No

Increasing thickness of existing lagging on No

incinerators

Insulation


First time installing of insulation No

Installing sound proofing panels No

Repair by replacing lagging Yes 35

Kitchen

COS


HEADING

Repair by resurfacing existing worktops and units Yes 35

Installing/building new kitchen units, cupboards, and so No on

Installing/building new work tops No

Repair by replacing existing kitchen units, cupboards etc

Yes 35 within

kitchens/tea points (see Note)



Lifts


Repairs to existing lifts Yes 37

Replacement of lift No

Annex 1 v3-01.doc

of 51

Installing a new lift No

Mechanical

Mechanical works would include items such as pipe work, ductwork, heating units,

chiller units, chilled water plant, air handling units, hot and cold water plant,

compressed air systems, medical gases and soil and waste pipe work.

COS


HEADING

Repairs to faulty systems (including parts) Yes 37

Replacement of system No

Installation of new system No

Alterations/additions and extensions to existing system

Fixing valves and/or meters to existing/new radiators,

No

pipes and taps to regulate temperate of hot water for

patient safety/energy conservation purposes

Yes 37

Repair existing pipes/radiators Yes 37

Installation of new/addition pipes/radiators No

Replacing water tanks No

Building/installing new water tanks No

First time installation of boiler No

Replacement of boiler No

Repair to boiler (including parts) Yes 37

Complete replacement of central heating system No

Installation of new central heating system No

Testing and Commissioning No

Repairing by replacing existing pipes/radiators in same Yes 35

location (see Note)



Miscellaneous

COS


HEADING

Minor works of a repair and maintenance nature Yes 35

Disturbance works, where those works only need to be

undertaken as a result of alterations to a building or as a

result of new building works

No

Annex 1 v3-01.doc

of 51

Fitting of fire hoses/extinguishers No

Fitting of grilles, bars, locks, window film and security

cameras No

Installation of shelves No

Replacement of shelves No

COS

HEADING

Breaking up and removal of covers to existing manholes

Yes 35 and

their re-provision in the same place at a higher level

Resurfacing existing non-fee paying car parks Yes 35

Resurfacing existing footpaths Yes 35

Relaying down to foundation of existing footpaths No

Road cleaning Yes 35

Building new car park/footpath where one did not previously exist

Roofs

No

DESCRIPTION

COS

RECOVERY


HEADING

Manufacturers warranties which are included in the

purchase price of the goods, this is a single supply of

goods

No

Maintenance contracts entered into after the

manufacturer’s warranty expires

Ramps

Yes 37

DESCRIPTION

COS

RECOVERY

HEADING

Repair existing ramps/handrails for access for the

disabled Yes 35

Replacing/altering of ramps/handrails No

Initial provision of ramps/handrails including replacement of stairs/steps by ramps

Roads

No

DESCRIPTION

COS

RECOVERY

Annex 1 v3-01.doc

of 51

HEADING

Maintenance of roofs including necessary access

works Yes 35

Resurfacing/replacing/re-slating existing roof Yes 35

Re-felting of flat roofs Yes 35

Altering existing pitch - that is, replacing flat roof by

pitch No

Roofing over previous open space No

Installation of canopy No

Sanitary ware

COS


HEADING

Repair of existing washbasins and sanitary ware Yes 35

Fitting new washbasins and sanitary ware No

Replacing existing systems in new locations or replacing

No bath by shower, toilet by wash basin, and so on

Replacement of sanitary back and side panels, vanity No units,

shower cubicles

Replacement of existing washbasins and sanitary ware in

exactly the same place, - that is, toilet cistern by toilet

Yes

cistern, sink by sink, bath by bath. This would not include

replacement of sluices and hoppers (see Note)

35



Signs

COS


HEADING

Repairs to existing signs Yes 37

Repair by replacement signs No

New signs necessary only as a result of a Trust merger

Walls

Yes 37

Annex 1 v3-01.doc

of 51

DESCRIPTION

COS

RECOVERY

HEADING

Repairing existing partitions Yes 35

Restoration of damaged plaster work/brick work Yes 35

Constructing new partitions/walls, altering partition

layout No

First time fitting of partitions in new

buildings/extensions No

Painting new walls/partitions No

Repairing damaged tiles Yes 35

Tiling new areas No

Repairs to wall-cladding Yes 35

Provision of wall-cladding/wall panels/wall protection

rails No

COS


HEADING

Replacement wall-cladding/wall panels/wall protection No

rails

Windows

COS


HEADING

Window cleaning Yes 35

Repairing existing window frames and glass with

similar items Yes 35

Bricking up windows or forming new window/window

frames No

Installation of fitted blinds, curtains and curtain tracks No

Replacement of fitted blinds, curtains and curtain

tracks No

Installation of combination window/blind units No

Repair to fitted blinds, curtains and curtain tracks Yes 37

Replacement of windows within same aperture (see Yes 35

Note)



Annex 1 v3-01.doc

of 51

Woodwork


Repairs to dado / picture rail and skirting boards Yes 35 Replacement of

dado / picture rail and skirting boards No

X-rays


Replacement of an X-ray tube or CT Tube (see Note) Yes 37


replacement for the listed items only

Annex B – Version History Version number Publication date Comments

1 15/02/2016 Contains HMRC website content VATGPB9700 extant at this date and unpublished October 2015 guidance for: • The Headings missing from the online

guidance: 14, 25, 26, 31, 35, 37, 41, 44, 45, 49, 52, 53, 54, 55, 56, 57, 61, 69 and Annex A concerning Headings 35 and 37

• Two Headings present in the online guidance*: 60 and 74

*The unpublished guidance for 60 is the

same as the published except for the

addition of the lone worker bullet point

under “Includes”. The unpublished guidance for 74 is shorter

than the published because it drops all

references to the 2013 withdrawal of the

exemption of research between eligible

bodies, which is no longer relevant

2 19/12/2016 Contains HMRC website content

VATGPB9700 extant at this date

3 03/07/2017 Contains HMRC website content

VATGPB9700 extant at this date

Top of the Document





annex 1- cos headings - amazon web services · annex 1 v3-01.doc this is additional information to...

Documents