Case Studies

Case Study: £11.5m VAT Refund Secured Following a Complex HMRC Review

Sector: Healthcare & Diagnostics

Issue: Historic VAT treatment of diagnostic and screening services

Technical areas: Healthcare exemption, partial exemption, Principal Purpose Test, RHP supervision, error correction and historic VAT reconstruction

HMRC engagement: 14 rounds of correspondence and representations

Outcome: Approximately £11 million VAT recovered

Case Study: £2.2m+ VAT Recovered for a UK Consumer Diagnostics Provider

Sector: Consumer Healthcare & Diagnostics

Service: Home blood-testing and diagnostic services

Technical areas: Medical exemption, healthcare professional involvement, partial exemption, unjust enrichment and VAT error correction

HMRC review: Detailed technical and evidential examination

Outcome: More than £2.2 million VAT recovered

Cast Study: £800,000+ VAT Liability Reduced to Approximately £28,000

Sector: Medical Aesthetics & Cosmetic Equipment

Issue: Historic VAT registration and treatment of equipment sales

Technical areas: Principal and agent relationships, taxable turnover, retrospective VAT registration, imports and software-related components

Original exposure: £800,000+

Final settlement: Approximately £28,000

Reduction: More than 95%

Case Study: £405,000+ UK VAT Exposure Significantly Reduced for a US E-Commerce Business

Sector: E-commerce / Online Retail

Client: US business selling to UK consumers

Initial exposure: Approximately £405,000

Formal VAT assessment: £301,895

Reduction from starting exposure: More than £100,000

Penalty: £45,295.95

Penalty suspended: 100%

Immediate penalty payable: £0

Debt including interest: Approximately £322,653

Payment arrangement: £9,000 per month

Case Study: £2 Million Potential VAT Liability Reduced by Approximately £1.5 Million

Sector: Healthcare & Diagnostics

Service: Online and in-clinic PCR testing

HMRC’s initial position: Online PCR testing standard-rated

Potential VAT exposure: Approximately £2 million

Our position: The complete online testing pathway constituted a single exempt diagnostic supply

HMRC’s final position: Online PCR testing accepted as VAT-exempt

Liability reduction: Approximately £1.5 million

Remaining exposure: Approximately £500,000