Wednesday, November 21, 2007

[Scotland] Major VAT blunder at new police agency to cost £5m / Herald, 20 November 2007
http://www.theherald.co.uk/display.var.1844623.0.0.php?utag=32924
LUCY ADAMS
"A major blunder by civil servants and ministers means a controversial authority set up to make savings across the police service is facing a multi-million pound VAT bill. The embarrassing oversight has left the Scottish Police Services Authority without VAT exemption. It would incur a £5m annual charge if it goes ahead with plans to centralise purchasing for all eight forces. The Treasury has written to the Scottish Government to explain that the SPSA, established to ensure efficiency savings and centralise procurement, has to pay 17.5% VAT on all purchases."