As you may recall, on 1 January 2022 the thresholds under the Public Contracts Regulations 2015 (PCR) were revised and, for the first time, those updated thresholds were inclusive (rather than exclusive) of VAT.
One of the effects of this change was that where opportunities of a value of (for central government authorities) £10,000 and (for sub-central contracting authorities and NHS Trusts) £25,000, in both cases inclusive of VAT, were being advertised they were also then required to be published on Contracts Finder (as opposed to the previously applicable thresholds of £10,000 and £25,000 net of VAT).
However, the situation has now been clarified by the introduction of The Public Contracts (Amendment) Regulations 2022 (the Amendment Regulations). The Amendment Regulations update Reg 109 of the PCR to provide for the VAT inclusive element of the threshold. In addition, the Amendment Regulations also specify that NHS Foundation Trusts now benefit from the higher threshold.
Note that PPN 09/21 clarified the provisions of Reg 110 of PCR in that the obligation to publish on Contracts Finder applies in circumstances where the contracting authority “advertises” a contract – where the contracting authority would only be required under its own governance to invite three tenders for example, this would not constitute “advertising” for these purposes.
This means that, as from 21 December 2022, the requirement to publish opportunities on Contracts Finder now applies to contracts which are being advertised with an estimated value of (for central government authorities) £12,000 and (for sub-central contracting authorities, NHS Trusts and NHS Foundation Trusts) £30,000, in both cases inclusive of VAT.
The table below summarises the applicable estimated values above which opportunities are required (save for in certain limited circumstances) to be published on Contracts Finder:
|Prior to 1 January 2022||1 January 2022 – 20 December 2022||From 21 December 2022 onwards|
|NHS Foundation Trust||£10,000 net of VAT||£10,000 inclusive of VAT||£30,000 inclusive of VAT|
|NHS Trust||£25,000 net of VAT||£25,000 inclusive of VAT||£30,000 inclusive of VAT|
|Other central government authorities||£10,000 net of VAT||£10,000 inclusive of VAT||£12,000 inclusive of VAT|
|Other sub-central contracting authorities||£25,000 net of VAT||£25,000 inclusive of VAT||£30,000 inclusive of VAT|
For further information, please contact:
Jenny Wade, Hill Dickinson