The social care industry is constantly expanding, with specific issues that are not replicated in other sectors

Medical professionals

The healthcare sector has faced a number of growing challenges in recent years. New funding models, ageing populations, and changes in technology – as well as the COVID-19 pandemic – have all created significant changes for the healthcare sector. 

These changes can bring about challenges when it comes to providing quality care at affordable costs. 

At PKF Smith Cooper, we help healthcare professionals navigate these challenges, and the opportunities that accompany these, all whilst keeping sustainable primary care as the central focus.  

Some of the services we can help with

Our specialist advisors work alongside GPs and Practice Managers, Dentists, Hospital Consultants, and other healthcare professionals to provide accountancy, business development and tax services. We have the experience to support you whether you need short-term accounting solutions, or longer-term strategy planning, and can assist with: 

  • Tax planning and VAT 
  • Practice accounts and reviewing accounting systems 
  • Budgeting and cashflow 
  • Funding 
  • Pension planning  

Social care

The social care industry is ever expanding and has specific issues that are not replicated in other sectors. 

At PKF Smith Cooper, we have many years of experience in advising social care clients, preparing accounts, advising on appropriate business structures, and dealing with specific tax issues. 

Some of the services we can help with

Employment tax

Due to the complicated nature of the legislation relating to the working hours of employees working directly in the homes with vulnerable customers, the social care sector is currently a major area of interest for both the HMRC Employer Compliance and National Minimum Wage teams. 

Our employment tax specialists have many years of experience in the sector, in addition to detailed knowledge of current legislation, meaning we can help to manage specific tax compliance areas that HMRC focus on and therefore help minimise potential risk. 

VAT

VAT is a major cost to the social care sector. As a consequence of care home fees being treated as exempt from VAT, this means that many bought-in goods and services (including certain supplies of agency staff) will have VAT added to the cost, which cannot be recovered. 

We have years of experience of working across the health and welfare sector. We consider the VAT position from both an operational and financial perspective, ensuring that any unnecessary exposures to VAT costs are mitigated. This is achieved by undertaking a review of the business structure alongside an expenditure review.  

Corporation Tax

Due to the nature of the social care sector, the treatment of expenses in terms of capital or revenue can be complex. This is because a significant number of assets have a useful life of less than two years or are replaced by a like-for-like replacement. 

The corporation tax team can assist with a detailed review to further evaluate on the nature of certain expenses and ensure that the correct tax treatment is undertaken. 

We have years of experience advising clients across the health and social care sector; if you need advice, please get in touch with our experts today.  

 

Key experts

John Farnsworth

Corporate Finance Partner

Derby

Laura Parr

Head of Employment Tax

Derby