Home / Events / Key Considerations for VAT Welfare Restructuring: Streamlining Implementation
Key Considerations for VAT Welfare Restructuring: Streamlining Implementation


30th January 2024    
2:00 pm - 3:00 pm

Event Type


As care providers enter 2024 under increasing cost pressure, VAT Welfare Restructuring is one of the few areas that can provide mitigation from the burden of VAT on the cost base.

This webinar looked at:

  • Key developments that are taking place in the sector
  • Pre-requisites for making this planning happen and taking the benefits
  • The timeline from implementation through to taking the benefits of restructuring


You can watch a recording of this session here:


You can access the FAW sheet in the drop down box below:


1) Is there an up-to-date RAG list of Local Authorities that are accepting this VAT charge?

Yes currently available on the Care England website here: https://www.careengland.org.uk/list-of-local-authorities-vat-recovery-status/

2) And how many LAs accept the 4 years back date charge?

This varies across the country but significantly the principles have now been endorsed under a tribunal decision issued 12 February 2024, please get in touch with jock@kieran-lynch.co.uk for details

3) Is the £1m to £2m funded fees per entity or per VAT group?

Per VAT group

4) Regarding shareholders, what if you have 2 shareholders owning 50% each?

HMRC will require a person or entity with 51% or more. This may well be a topco/holdco which owns the subsiduary opcos 100% for example

5) Can you advise on VAT recovery on agency costs? we run supported living for adults with Autism and LD. Agencies expect us to have a registered nurse in each home to qualify for charging VAT Is this right?

The general principle is that the supply of qualified staff is exempt for vat purposes, non-qualified staff are standard rated for vat – unless supplied as a package of staff under the supervision of a qualified person.

6) What is the typical value of the benefit?

4% of funded turnover for residential providers – typically £1,400 per funded bed per annum, homecare is lower at around 2% of turnover.

7) Where are the larger providers on this issue?

I think there is now a general acceptance that the large providers recognise they are losing competitive advantage by not implementing the vat arrangements and therefore are at varying stages of implementation or preparing for implementation.