Our Services

Contract Restructuring

01 Contract Restructuring

The Opportunity

“At a time when our sector needs to optimise its financial position, I would encourage any care provider, no matter what size operation they have, to consider the cost benefits and efficiencies which the VAT Solutions ‘contract restructuring’ service has to offer.”Ian Jarvis (Finance Director) Kingsley Healthcare

The care sector, undeniably, faces challenging times in the midst of increasing cost pressures, staff shortages and limited fee income. It has never been more important to focus on the long-term commercial viability of your care business.

VAT has long been a challenge for the healthcare sector. Our contract restructuring arrangement, now widely adopted within the sector, presents care operators with the opportunity to recovery VAT on an ongoing basis.

By creating the vehicle for taxable supplies (using a VAT group registration, and by means of a non-regulated entity which sits within a VAT group), we provide a structure that streamlines, centralises and optimises the efficiency of the administration and management of a care operation’s local authority/CCG/Health Trust fee contracting process.

Not only does the structure create considerable VAT savings for an operator, but it also provides significant commercial benefits for the business in the form of improved efficiency and communication regarding local authority fees.

VAT Solutions, by means of our contract restructuring opportunity, are ideally placed to help you optimise what you currently have, plan sustainably for the future, and explore what is available to you going forward. With over 30 years of experience in the healthcare sector, we understand the unique pressures you are under and the challenges you face, and our service reflects that understanding.

Learn more about choosing your ‘Contract Restructuring’ partner

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“As the originators of this arrangement, VAT Solutions have demonstrated significant depth of knowledge in all aspects of applicable legislation and case law regarding ‘contract restructuring’ …. I cannot fault their ongoing commitment to achieving the best result for us.”

David Manson, CEO, Keys Group

The Benefits of Contract Restructuring

  • Reinvest in your business and improve your cash flow: Recover VAT to help fund future growth and business development, or develop new and existing services
  • Tried and tested strategy: As the originators of this arrangement, you can rest assured that we have achieved success for many other businesses and that you are investing wisely in the support you need.
  • Become more sustainable: Develop, expand and strengthen the sustainability of your care business by recognising the huge potential in contract restructuring.
  • Streamline business admin: Centralise and streamline your contracts and fee management and free up frontline care staff to focus on service delivery and operation.
  • Save money: By centralising all of your purchasing and financial management, you will enjoy the benefit of economies of scale.
  • Build better relationships: You will strengthen core relationships with your funding bodies by having one centralised and dedicated point of contact for dealing with local authorities and CCGs, creating better communication and giving more negotiation leverage.

Why VAT Solutions?

  • 30 Years Experience: Our team boasts 30+ years of experience in dealing with tax for the healthcare sector, so you can be sure your business is being supported by safe hands.
  • Corporate Pedigree & Knowledge: Ongoing VAT advice, support and up-to-date care sector knowledge from our specialist team with a long history and solid, consistent trading pedigree
  • Small business customer service: You are our priority, and our friendly team are always on hand to support you. We provide bespoke solutions for a range of clients and even provide specialist VAT training for finance staff from a dedicated member of the VAT Solutions team.
  • Solutions for every provision: Available to private, charity and not-for-profit care operators; we have experience and expertise in the team to support you, no matter what your provision may be.
“VAT Solutions are thorough, professional and have proved themselves to be a ‘safe pair of hands’ with their contract restructuring arrangement. They have not only worked collaboratively to deliver results, but have project-managed the entire process to remove operational impact and are consistently on hand to assist.”

Ted Smith, Chairman of G-Square Healthcare Advisory Board & Non-Executive Chairman of Accomplish Group & Keys Group


Will it affect my relationship with local authorities/funding bodies?

No. We have strong working relationships (and trust built up by over 15 years of positive dialogue and communications) with local authorities/CCGs nationally. ‘Contract Restructuring’ presents no negative impact on funding bodies. We are sensitive to your funding streams and handle liaison and negotiation accordingly – our clients will testify that their relationships with local authorities and CCGs have not been negatively impacted in any way and that their fee contracting process has actually been streamlined and improved by our restructure.

Will it affect what I charge my private fee-paying clients?

No, not at all.

How long does the process take?

From our engagement with you to creating a working VAT group, we estimate a 3-6 month time frame.

How does your fee structure work?

The technical and administrative restructuring element of the process, creation of the working VAT group, all related disclosure to HMRC and legal documentation, is carried out for a fixed fee.

Our fees for the implementation services we provide are contingent and are therefore reliant upon our successful implementation both in terms of our specialist skills in converting existing exempt contracts with LAs/CCGs to taxable contracts but also in respect of the VAT services we provide in maximising your input tax recovery while remaining complaint with often changing and complex legislation.

This is a deliberate approach, reflecting our confidence in our ability to deliver, which enables our services to be rewarded and linked directly to the successful implementation of our work. Our success is your success.

If we, like some providers, were to adopt a fixed fee approach, you, the client, would then pay a fixed fee sum, regardless of whether the service provider identified large amounts of input tax. That fixed fee would be payable regardless of whether contracts were novated with LAs/CCGs, and that same fixed fee would be payable regardless of whether HMRC accepts the input tax on the VAT return or rejects it. In addition, a provider offering a fixed fee is not incentivised to work above and beyond to achieve a successful outcome for their client. A contingent fee is equitable to both parties and commensurate with the recovered input tax level. If the level of input tax is high, the fee reflects this but equally; if the input tax is not so high, the fee matches this and reduces accordingly. A fixed fee, however, is payable regardless of the level of input tax being recovered.

Do you get approval in advance from HMRC?

No – simply because there is no approval with HMRC for indirect tax. We fully disclose to HMRC, and tax counsel and regulatory opinion fully support our restructuring work. We engage our clients for a minimum term of five years and, as such, are an expert extension of your finance and taxation team in respect of HMRC liaison, VAT advice and submission of VAT returns.

“We prepared and have regularly reviewed the VAT Solutions ‘Contract Restructuring’ arrangement, and have no hesitation in supporting its viability from a sector regulatory and legal perspective. Given the careful research and detailed, quality backing which VAT Solutions put into their work, and at a time when health and social care needs as much assistance as possible to sustain itself, then it is an opportunity which I would urge any care group to explore with them.”

Paul Ridout, Ridouts Professional Services Ltd.

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