Feature / Technical round-up

VAT recovery – total rewards – email fraud – performance pay

• HM Revenue and Customs has reminded NHS bodies of the rules on approved VAT recovery methods. In a letter to the HFMA VAT Technical Sub-committee, it said a recovery method is approved if the NHS body has a letter from HMRC detailing the VAT recovery method and the NHS body is following the method exactly. If an NHS body is not following the method exactly or it does not have a letter from HMRC, then its VAT recovery method is not approved. These NHS organisations should contact HMRC to seek approval for their recovery method.
• In the meantime, the Department of Health has updated the list of members of the NHS VAT Division. It said the list has been changed to reflect the fact that 'Moorfield Eye Hospital' is not a member of the division.
• NHS Employers has issued an update on total rewards statements and advice on ensuring a smooth introduction. The update includes case studies and a 20-week ‘to do’ list for tranche three organisations.
• Northern Ireland’s Department of Health, Social Services and Public Safety has issued a fraud warning regarding email spam. The warning is in a circular from the Department of Finance and Personnel, which highlights the threat from apparently legitimate emailed invoices. In fact, the emails contain a link that downloads malware that could lead to log on details and passwords being collected for malicious uses. The Department asked finance staff to be vigilant when opening and responding to emails from unknown sources, particularly those containing links or attachments.
• A toolkit designed to help employers link pay with performance has been unveiled by NHS Employers. This will support the amendments to agenda for change, made in March 2013, that require pay progression to be linked to meeting the locally set level of performance.
• The Department of Health has published an updated queries sheet for payment by results for last year, 2013/14. It said this is due to be the final report on PBR queries for that financial year.
• The actuarial revaluation of the NHS Pension Scheme has set the employer contribution rate at 14.3% of pensionable pay. This applies for the four years from 1 April 2015, when the pension scheme is being introduced, and confirms the increase in employer contributions set out in the Budget. The initial employer cost cap is 11.6% of pensionable pay.
• NHS Employers has released a calculator to help NHS organisations assess the benefits of using the electronic staff record (ESR). It said there is evidence ESR enables workforce efficiency, allowing both transition and transformation to take place.