VAT bills thwart funding

Universities could face extra bills of several million pounds in VAT fees, accountancy firm KPMG warned this week.

A tribunal that investigated a case at Glasgow University ruled that HM Revenue and Customs can charge VAT on staff who are employed by a university but who work in the National Health Service. The university had hoped to prove that such VAT fees would be recoverable by NHS trusts, thus freeing more money for research.