Locum Doctor Supplies to NHS Trusts Held VAT Exempt: Tribunal Rejects HMRC’s Narrow Interpretation

• The Isle of Wight NHS Trust successfully appealed HMRC’s decision, with the tribunal ruling that the supply of locum doctors qualifies for VAT exemption as the provision of deputies for registered medical practitioners.
• The tribunal rejected HMRC’s narrow interpretation that only direct supplies of medical care are exempt, favoring the ordinary meaning of the statutory language.
• Internal HMRC policy documents and Hansard extracts were deemed inadmissible for statutory interpretation, except for public explanatory materials.
• The decision may allow NHS bodies and locum agencies to claim VAT exemption on locum doctor supplies, potentially leading to significant VAT recovery.
• The case underscores that clear statutory wording prevails in tax law, and tribunals will not rely on non-public HMRC documents for interpretation.

Source: rpclegal.com

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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