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The Human Cost of VAT. Case Study The Multiple Sclerosis Society of Ireland Michael Dineen. MS Ireland was founded in 1961 by Dr. Robert Brian Pringle.
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The Human Cost of VAT Case Study The Multiple Sclerosis Society of Ireland Michael Dineen
MS Ireland was founded in 1961 by Dr. Robert Brian Pringle. The Society exists to facilitate People with Multiple Sclerosis, to control their lives and environment, to live with dignity and participate in the community. MS Ireland offers services to people with MS through it’s network of voluntary branches and through its full-time staff at the National Office and in the Regions MS Society – Brief Background
National MS Care Centre • The national MS care centre opened in 1989 and after additional development work in 2001/2002 now provides 12 bedrooms for short-term respite care and therapy services to people with multiple sclerosis and other neurological conditions
National MS Care Centre Bushy Park Road, Rathgar
VAT on capital expenditure • Care centre development • Proposed new Resource Centre
Cost of recent development, extension and refurbishment at the Care Centre Net VAT Building costs € 2,115 K € 265 K Consultancy € 408 K € 85 K fees etc Total VAT cost € 350 K
Proposed new Resource Centreat Northumberland Road Costs are VAT inclusive New premises € 2.15 m Refurbishment & consultancy costs € 1.55 m Total projected costs € 3.70 m
VAT Bill on Resource Centre refurbishments • VAT on building refurbishments € 162,000 @ 13.5% • VAT on Design,Planning and Other Fees @ 21% € 32,000 • Total VAT Bill € 194,000
VAT on annual Administration Costs • The Care Centre • Head Office/Resource Centre
Annual VAT cost of running the Care Centre • € 10,500 • € 22,000 • ( Estimated ) € 25,000
Annual VAT on MS Society costs • € 183,000 • € 200,000 2003 ( Estimated ) € 220,000
Summary of VAT Costs Building care centre VAT on Building costs € 265,000 VAT on consultancy fees etc € 85,000 Running costs - 2002 Care centre € 22,000 Head office € 200,000 Sub-total € 572,000 Potential cost re new Resource Centre € 194,000 Total Vat cost € 766,000
Impact of the cost of VAT • Instead of providing urgently needed services, € 766,000 goes to the government coffers. This is wrong!! • MS Ireland could use this money to: - • Improve community services • Increase counselling services • Provide additional informational publications
IN CONCLUSION MS Ireland calls on the government to give us our VAT back!