Would you like to get back all the VAT you’ve paid since starting in business?

It’s not as impossible as you might think but it can be a confusing picture. Stuart Rivers of Optis VAT provides the following impartial advice.

1. Which homes qualify?
Residential homes with a significant percentage of local authority funding, or dual-registered homes with a significant amount of residential beds.

2. Can I claim up to the present day?
No. VAT is claimable only as far back as 1973 (when VAT was introduced) or from when your home commenced trading, until 21 March 2002.This is the cut off date.

3. But Care homes are exempt from VAT!
The High Court upheld a test case in 2002 by Kingscrest Associates, which meant that Customs had been misapplying the VAT laws. Therefore, all residential Care homes could seek refunds.

4. What can I claim for?
All your business expenditure on which you paid VAT – from day-to-day running costs to major projects – extensions, improvements, fixtures, equipment, repairs and renewals.

5. But I’m not registered for VAT or never was?
It makes absolutely no difference that you were never registered for VAT or even registered for VAT now. You will be registered to make a claim but when completed, you are then de-registered.

6. I previously claimed back VAT under ‘The Toothbrush Scheme’. Can I still claim now?
Yes - the only effect will be a dilution of the total value of your new claim.

7. How do I find out about claiming?
Your accounts need to be analysed by professionals qualified to undertake the work who have enough ability to understand the process.

8. Do I need to pay a fee to see if I can claim?
Your claim’s likely success and value can be discovered with no risk and entirely free.

9. Can I claim for a home I used to own?
You can claim for the home if you have the minimal information for when you owned it.

10. Is there a lot of work for me to do?
With a good advisor, there will be almost nothing for you to do – just supply annual accounts for your claim period and the information you hold about residents. A good company will manage the whole process and deal with all organisations, including HM Revenue and Customs.

11. What will I have to pay and who can I trust to do it?
You should only be charged a fee based on a percentage of the refund after it has been received. To choose an advisor, ask about having details of home owners who have got refunds that you can speak to. No reasonable company should object.

For an informal talk about the possibility of reclaiming VAT, please feel free to call Optis VAT on 01423 524808 or fill in the assessment form and we will call you back. At no time are you under any obligation to proceed with the claim.