Contract Restructuring – Choosing Your Partner
Key points to ask when you are considering the appointment of a specialist supplier for contract restructuring and its implementation:
- Do they have the administrative capability to document your restructure robustly and accurately (for HMRC purposes), and to maintain that documentation process as an ongoing concern throughout implementation.
- Do they have a technical VAT team with the commercial expertise, and sector knowledge, to review, analyse and optimise your input tax over the period of engagement.
- Does their client base reflect your particular care provision, and are they fully conversant with the regulatory/legislative background to cover all service streams.
- Do they have an experienced implementation team to handle fully your contract novations, with the appropriate historical relationships and contacts within Local Authorities/CCGs/Health Trusts in order to novate contracts as quickly and efficiently as possible.
- Are they able to demonstrate the necessary full legislative and regulatory knowledge required to carry out a sound, secure restructure, with the backing of eminent tax counsel and respected sector regulatory opinion.
- Is their fee structure reflective of a success-based, contingent approach which will incentivise optimisation of your input tax and recovery (and efficient novation of your contracts) over the engagement period. A fixed fee approach is not only potentially indicative of a supplier new to the market, but also fails to link the cost to the client to successful delivery by the supplier.
- Do they have a consistent and established trading history, with fully transparent business disclosure readily available.
- With regard to charity and ‘not for profit’ operators, are they fully conversant with the specific but critical nuances which need to be applied when restructuring for such provision.
© Kingscrest Services Ltd (t/a VAT Solutions) 2014