On 24 April, HMRC issued brief 02/2025 on state-regulated care providers who form a VAT group with a non-state-regulated care provider, saying that they consider these VAT grouping structures to be a form of tax avoidance.

HMRC suggest that organisations currently using these VAT grouping structures may want to review their current VAT accounting practices independently and get professional advice. HMRC advise providers who think that they might be part of a VAT grouping structure to email: CAGetHelpOutOfTaxAvoidance@hmrc.gov.uk, including the words ‘VAT grouping’ in the subject of your email. 

We are uncertain if this will affect our members, but please contact melanie@careforumwales.co.uk if you have any concerns.