VAT can be a minefield for medical and health care professionals. The core services of a registered health care professional in business are generally exempt from VAT. But big problems can and do crop-up when HM Revenue & Customs dispute the basics of what is supplied. This can be to do with the core of the professionals’ own business, related activities or when acting as a locum for an agency or for another organisation like a hospice. Getting it wrong can result in a big bill for tax and penalties long after the event. HMRC can claim what were thought to be exempt services should have been be taxed. Or they may say the opposite and want to claw-back input VAT claimed in the past because now they say the services are exempt. Either way HMRC can demand money. But it might not legally be due at all.
This practical guide is aimed at the whole spectrum of exempt medical and health care professionals: doctors, dentists, therapists, psychologists and many other medical professionals, as well as their own non-specialist advisers. The book explains the VAT consequences for medical and health care professionals in business on what they do, how and when. To help them get it right first time or as a handy guide if HMRC raise a query.
This book will be available shortly after Christmas. Watch this space!
Tax Barrister, Accountant