Companies profiting from privatisation of NHS are unlikely to ever pay tax

The companies eating up the publicly-funded NHS are unlikely to ever give anything back in tax, it has emerged today.

Analysis by Richard Murphy, a chartered accountant at Tax Research UK, found that Virgin Care Ltd, which has been quietly eating up large chunks of the NHS, is “unlikely to pay any tax in the UK in the foreseeable future”.

That’s because Virgin Care and its parent company Virgin Group is made up of 13 holding companies, some of them offshore, based in the tax haven of the British Virgin Islands.

It is the type of company structure that largely avoids tax liabilities, despite profiting heavily from income generated in the UK.

The Group, which whose principle beneficiary is Sir Richard Branson, is reported to have a net worth of £2.7 billion.

Last year Virgin Care won a £700 million contract to run 200 NHS and social care services to more than 200,000 people in Bath and north-east Somerset.

In March the company sued the National Health Service after the healthcare group lost out on a contract to provide children’s services in Surrey.

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2 Responses

  1. Martin Pritchard

    Exactly the sort of firm that would be banned from bidding for government contracts under Labour. From the 2017 Manifesto, page 14:
    “We will require firms supplying national or local government to meet the high standards we should expect of all businesses: paying their taxes, recognising trade unions, respecting workers’ rights and equal opportunities, protecting the environment, providing training, and paying suppliers on time.”

    Now why would Branson fabricate such a thing as Traingate in the lead-up to an election…?

  2. Liz Douglas

    Atos walked out of their contract with the DWP rebranded and got the PIP contract. Maximus still pay ATOS to train their staff after handing over their trained staff. Capita, G4S (Who the government are signing a contract with to give them powers of arrest in their police contract) Capita caused untold harm when working for HMRC over and underpaying those on Working Tax Credits – Branson owns shares in Capita and Serco both of these companies are virtually running this country. Virgin Care (No longer belongs to Branson sold it and the rights to use the name etc.) All of these corporations have been buying up NHS and Welfare contracts since 2011 – All have vast multinational health and employment insurance arms. Some have MOD and government IT contracts If only I could find out how many global trade deals they were involved in ….

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