PCR applies at a new rate from 1st January 2022

Effective from 01 January 2022 the Public Contracts Regulations 2015 'PCR2015' thresholds will be amended as follows. The most notable change is that previous thresholds were exclusive of VAT whereas these new thresholds are inclusive effectively reducing the threshold for tenders subject to PCR2015

Type of contract	Previous threshold to 31.12.21 exclusive of VAT	New threshold effective 01.01.22 now inclusive of VAT
Goods and Services	£189,330	£213,477
Works	£4,733,252	£5,336,937
Light Touch	£663,540	£663,540

* VAT calculated at 20%

This means that contracting authorities may have more requirements falling under PCR2015 and, if the requirement is subject to VAT, they will need to know at what level so they can make an accurate assessment of whether PCR2015 apply to the procurement.

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