Autumn Statement: Help healthcare businesses recover VAT
As a sector that provides VAT exempt services, it’s a continuing bone of contention for healthcare businesses that they are unable to recover the VAT they are charged on direct business expenses.
Why not make healthcare services zero-rated instead of exempt and then the 20 per cent VAT charged on direct expenses will be recoverable.
I’m not holding my breath, but I’d like to see government give some consideration as to how this issue could be addressed.
I am concerned about the possibility of a reduction to the £50,000 annual allowance threshold for pension tax charges as that will put even more GPs into the position of having to pay this tax charge in respect of growth in their NHS pension benefits.
Generally we could do with a boost for employers to encourage business growth by cutting the rate of employers’ NIC, and increasing (or at least retaining) the Annual Investment Allowance.
I’d also like to see the chancellor take more lower paid workers out of the tax and NIC system altogether by increasing the relevant lower band thresholds.
Deborah Wood, healthcare services partner at Moore and Smalley