VAT and how it is applied to care fee invoices - Find a freedom of information request

Pre-amble

To support our understanding of VAT and how it is applied to care fee invoices within your authority, we are requesting information on your current approach to VAT applied to care fees, sometimes referred to as Welfare Services Restructuring, for adult social care providers under the Freedom of Information Act 2000.

Questions

1. Does your local authority permit care providers to apply VAT on their weekly or monthly care fee invoices?

2. If your local authority does not permit the application of VAT to invoices for care fees, please explain why your local authority has taken this decision, when that decision was taken, or last reviewed? Please provide any links to reports or papers which evidence this decision and rationale for taking this decision.

3. If you do permit the application of VAT on invoices for care fees, please provide information on how adult social care providers can work with the local authority to do so

4. Is there any specific eligibility criteria or requirements necessary for your local authority, for care providers prior to applying VAT to care fee invoices for your authority?

5. Who in the local authority should a care provider contact if they wish to discuss charging VAT on care fees invoiced to your local authority? Please provide a named contact, phone number, and email address

I can confirm that the information requested is held by Lincolnshire County Council. I have detailed below the information that is being released to you.

1. Yes, subject to certain criteria, and care providers must submit separate VAT only invoices.

2. N/a

3. In the first instance, care providers should contact the local authority with the initial request, via the email provided in question 5.

4. Care providers much provided a copy of the VAT Group Registration Certificate plus any correspondence from HMRC confirming acceptability of the group structure.

Once this is approved by the local authority’s VAT team, VAT only invoice may be submitted by the care provider, subject to the following criteria: Where the local authority contracts with a non -CQC registered care group, that is registered for VAT, the care provider can charge the local authority VAT on the following:

• Residential Care fees, only if the care is part of the local authority contract

• Block Beds

VAT cannot be charged to the local authority in respect of:

• Nursing fees that are Health responsibility which the local authority recoups from the NHS

• Transitional Beds

• Beds funded by deferred payment loans where the service user contracts directly with the home,

• Self-Funders

• Any other care where the service user contracts directly with the home (this is because the home is CQC registered and therefore its services are exempt from VAT)

5. Please email adultcarefinance@lincolnshire.gov.uk