Parking Eye charge Burton Hospitals VAT

Stroma

Its still a shocking amount of money being creamed off cancer and terminally ill patients amongst others at these hospitals, this nhs trust should be hanging their heads in shame at the glutinous feeding frenzy that is happening at their PUBLIC FREE at point of use NHS Hospitals!

Parking Eye IMO are the worst out of a corrupt lot of vermin!

trisontana

The distinction between the revenue raised by P&D machines and the rip-off amounts taken by PE must be emphasized . At least the former does go back to the hospital, although the morals of that is open to question. It's the vast amounts "stolen" by Parking Eye that is completely inexcusable. They don't deserve a penny . They are just preying on the sick . I wonder if Rachel sleeps at night? If she does, she has no conscience at all. Bad Girl!

The_Slithy_Tove

trisontana wrote: »

I wonder if Rachel sleeps at night? If she does, she has no conscience at all. Bad Girl!

It's not just her who should have this on her conscience. Helen Ashley should also be feeling guilty and really ought to be held responsible for this shambles (though as one of those very highly paid NHS Trust execs, she rakes in her massive salary while adopting a completely arrogant attitude to the whole thing). She should be fired and made to refund any paid parking charges out of her own money. She's an utter disgrace. If this is her way of handling non-clinical aspects of the hospital, I wonder what poor decisions she makes around healthcare.

Ivor_Pecheque

Complete disgrace, whoever commissioned these services should be held to account.

Shouldn't hospitals be about caring for people and improving health ?

Dragging people through the courts, because a patient, and their family, are reflecting on the advice of their medical team, is just not right.

Whether or not "Rachel sleeps at night" is probably a little unfair.

The system needs scrutinising.

trisontana

I have no sympathy whatsoever for Rachel Ledson. She is head of PE's legal department. It's she who signs all those court papers and, by reading the initial appeals, she must be aware of the many vulnerable and sick people her company is persecuting. You might say "she's only doing her job". If she had any conscience she would go and get a job elsewhere.

Fergie76

What I don't understand is, if it's a VAT only invoice, that must mean the Service charge is £0.00 and 20% (VAT) of £0.00 is £0.00...

Also, if Scamming Eye are claiming VAT, are they then forwarding this to the tax man?

hoohoo

Fergie76 wrote: »

What I don't understand is, if it's a VAT only invoice, that must mean the Service charge is £0.00 and 20% (VAT) of £0.00 is £0.00...

Also, if Scamming Eye are claiming VAT, are they then forwarding this to the tax man?

Pe invoice a motorist (say) £100. This is for breach of contract so no vat applies. This money is collected by pe on behalf of the landowner, so when the motorist pays up, pe owe the landowner £100.

PE's contract clause3.11 allows them to charge the landowner all parking charges received as a service charge. So the landowner owes pe £100, but service charges incur vat so the landowner owes £100 plus vat of £20.

The two £100 cancel out so pe sent a vat only invoice essentially saying

You owe £100 plus £20 vat
Already paid: £100
Outstanding: £20

There is no reason for them not to forward the £20 to the vat man.

Dee140157

Pe invoice a motorist (say) £100. This is for breach of contract so no vat applies. This money is collected by pe on behalf of the landowner, so when the motorist pays up, pe owe the landowner £100.

PE's contract clause3.11 allows them to charge the landowner all parking charges received as a service charge. So the landowner owes pe £100, but service charges incur vat so the landowner owes £100 plus vat of £20.

The two £100 cancel out so pe sent a vat only invoice essentially saying

You owe £100 plus £20 vat
Already paid: £100
Outstanding: £20

There is no reason for them not to forward the £20 to the vat man.

I have never understood all this till now. So thank you for the explanation now. So what I understand from this, and please correct me if I have misread as I would really I like to get this clear in my head:

PE manage car park for "free" ( or pay a sum to manage it)
PE make xxxx thousand pounds from motorists for breach
They then invoice hospital for service charge and hospital has to pay £420,000 in VAT to PE for managing the car park which PE then pay to Government. So it really is a tax on the sock. Or do the hospital pay the vat bill to the government?
At first I thought hospitals were exempt from vat, but on further reading I realise services especially contracted out ones are not exempt.

So costs hospitals large sums of money to manage a car park, whereas if they paid a team of men/women to sit at a barrier and take hospital payments during the busy times when parking is at a premium, it might cost say £40,000 a year in wages etc. (Possibly more but significantly less than £420,000) . And of course if they charged for parking rather than PE, money might return to the NHS trust etc. (I am not says anyone should pay here by the way, it I do get that in town centre hospitals parking needs to be managed.)

Or does the hospital get funds from the xxxx thousand that PE collect.

Sorry to be so dumb, but as a regular poster I am aware I really should be up to speed with this point and I'm not!

Stroma

No it's not £420k a year they pay, it's 20% of that which equates to £84k a year which is the vat element of that figure. And as there is more than one hospital to cover over this I believe it will probably cost more than £40k a year in wages. But as they already have staff working in the grounds that figure is pretty hard to quantify. If they had pay on exit with barriers then this scam would be over.

bargepole

Dee140157 wrote: »

Or does the hospital get funds from the xxxx thousand that PE collect.

Sorry to be so dumb, but as a regular poster I am aware I really should be up to speed with this point and I'm not!

You're still not quite up to speed.


The hospital retains the revenue from the pay & display machines.


The 'parking charges' collected by PE from overstaying motorists generate the £7,000 monthly VAT liability as explained above, which is paid to PE by the hospital, and passed on to the VAT man.


But the NHS trusts are VAT registered bodies, so they can offset the £7,000 against VAT on invoices which they have raised, so in reality it costs them nothing.


As these public bodies are subject to FOI requests, the amount of VAT payments can be revealed, which in turn shows us how much PE are collecting in paid parking charges - and in the case of Burton, that's £420,000 annually, equivalent to £1150 daily, in other words 18 patients or visitors being scammed every day of the week.