Health Authorities

As a Health Authority you may be taxed on trading activities that generate profits in excess of £50,000. 

Our Public Sector team has experience in NHS and our taxation department frequently advise on the tax implications for a wide range of organisations. 

Section 519A of the Income and Corporation Taxes Act 1988 confirms that the main activity of providing healthcare is tax exempt. For activity to be taxable depends upon whether it: 

  • relates to the provision of healthcare
  • is in competition with the private sector
  • has significant profits in excess of £50,000.

Do you know whether there are income streams that are non-core that generate a profit? Guidance suggests that private patient income, patient and visitor car parking, and staff catering will not be taxable. However business activities, including laundries, selling services to other organisations, a laser clinic and exploiting intellectual property could be taxable. 

Through efficient tax planning it is possible to avoid paying tax, for example by creating a spin-out company and transferring the profits to the trust using Gift Aid. It is also important that a fair proportion of overheads are applied to the costs of the activities thereby reducing the level of taxable profit. 

If you would like further information on how we could assist you avoid the risk of incurring tax, please contact me at the Gosforth address and telephone number below, or alternatively email me on ian.wallace@taitwalker.co.uk

PAYE worries?

Your employees will be one of the most important assets of your organisation. PAYE regulations are complex and if your organisation does not comply it could be faced with further tax assessments, interest charges and penalties. 

Our Public Sector and Employment Tax Group have developed a diagnostic tool to comprehensively review the effectiveness of your PAYE systems and processes. The tool is based on H M Revenue & Custom’s own systems and reviews areas such as: 

Benefits: company cars and vans, home telephones, round sum allowances, clothing allowances, relocation expenses, long service awards, transfer of assets, beneficial loans, employer provided accommodation and staff entertaining.
Expenses: travel and subsistence payments, client entertaining and reimbursement of other business expenses.
Employment status: employed or self employed and examination of accepted policies.
Salary sacrifice schemes: in relation to childcare, smart pension and home computers
Construction industry scheme: monthly returns and verification processes
PAYE Settlement Agreements and Dispensations: are they relevant? 

At the end of the Review you can expect a report that clearly sets out the potential risks with appropriate recommendations. 

If you would like further information on how we could assist you avoid the risk of incurring tax penalties, please contact me at the Gosforth address and telephone number below, or alternatively email me on ian.wallace@taitwalker.co.uk