VAT Advisory Services · UK public procurement notice

Royal United Hospitals Bath NHS Foundation Trust (RUH) intends to award a contract for VAT Advisory Services to KPMG LLP for a 12‑month period. The Trust requires continuity of specialist VAT support during a period of significant organisational and regulatory change. RUH operates a complex and uniquely structured financial ledger that differs from neighbouring BSW Trusts. The incumbent supplier, KPMG, holds detailed knowledge of RUH’s historical VAT positions, COS VAT classifications, legacy financial structures and audit evidence, developed over several years of continuous service. Replacing the incumbent at this time would require substantial re‑analysis of historic claims, re‑establishment of COS methodologies and replication of technical VAT work already completed, creating disproportionate operational difficulty, risk of inconsistency and potential financial loss.

the Trust is also preparing for internal restructuring activity within the wider BSW system, including potential movement towards financial process alignment. During this transitional period, continuity is essential to maintain accurate VAT treatment and avoid disruption to ongoing regulatory preparation work. The services required are compatible with and directly linked to those already provided by the incumbent. RUH is therefore using a direct award route under Section 41 of the Procurement Act 2023, as changing supplier would lead to technical incompatibility, disproportionate duplication of work and risk to VAT compliance.

This notice is being published to provide full pre‑award transparency in advance of the direct award decision.