NHS Trust Wins VAT Exemption for Agency-Supplied Locum Doctors Against HMRC

• First-tier Tribunal ruled in favor of Isle of Wight NHS Trust against HMRC regarding VAT exemption for locum medical practitioners supplied through staffing agencies
• HMRC argued that agency-supplied locums were taxable staff supplies rather than exempt medical care, but the tribunal disagreed with this restrictive interpretation
• The tribunal found that locum doctors acting as deputies for registered medical practitioners qualify for VAT exemption under existing legislation, not just for out-of-hours GP services
• The decision overturns HMRC’s previous position and confirms that agency-supplied medical locums fall within the VAT exemption framework
• This ruling opens opportunities for significant VAT reclaims across NHS trusts, recruitment agencies, and private medical practices who should review their positions urgently

Source: deeksvat.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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