A HIGH Court ruling means that some care homes may be able to claw back substantial VAT payments, a teleconference was told this week.
The High Court judgement in the case of a care business called Kingscrest means that, in some circumstances, care homes can reclaim VAT payments which could total up to £150,000 per home, an audience at the teleconference hosted by Yorkshire Bank’s Lincoln Business and Private Banking Centre heard.
Care home businesses attended the teleconference, which linked them up to Yorkshire Bank’s national healthcare sector lead, Derek Breingan, and Jock Waugh, managing director of Sheffield-based VAT specialists, Kieran Lynch & Co.
They explained the ramifications of the High Court ruling which supported a claim by Kingscrest, which operates learning difficulties units, that it fell outside VAT legislation and should be able to reclaim VAT payments, which it had previously not been able to do.
The audience heard that the ruling means that care home operators will be able to claim back around £3,000 per bed, with average payments of between £100,000 and £150,000 per home.
The teleconference was part of a series of events being hosted by Yorkshire Bank to allow business customers the chance to hear from experts.
Forthcoming events will cover a number of subjects, including the Budget, and trade in emerging markets.