Cloud / VAT / Web Design Services
The HMRC’s produce strict guidance on what services the UK Government and NHS bodies can reclaim VAT.
In summary, if you provide web design or redesign of websites, the Government department can reclaim the VAT.
If you provide people to do this, the VAT cannot be reclaimed, because VAT cannot be reclaimed on consultants, temporary or interim staff.
You must provide a web design / redesign service!
Here’s an extract from the guidance.
Contracted Out Services (COS) Guidance — government departments and NHS bodies
The VAT government and public bodies manual (VATGPB) is currently in the process of being transferred from the HMRC website to GOV.UK and while this is happening it is not possible to publish any further amendments. In the interim you may treat this document as the current guidance for these Headings.
In this document you will also see that we have made some changes to the first tranche of guidance published in March 2015 (pages 14–17) to take into account comments made to us after the guidance was published.
Once the guidance in this document has been published in the VATGPB manual on GOV.UK this draft document will become obsolete.
VATGPB10710 COS Heading 49
Photographic, reprographic, graphic and design services
This Heading allows recovery on contracted out photographic, reprographic, graphic and design services.
Hire of a photographer
Design & printing of annual reports
Bulk copying services
Design and redesign of a website
Purchase of photocopiers etc.
Printing of business cards and headed stationary — these may be recoverable under Heading 61
Printing of office signage