VAT Exemption for Locum Doctors: Key Implications for NHS Trusts and Medical Providers

• The First Tier Tribunal ruled that supplies of deputising locum doctors to NHS Trusts and similar providers should be exempt from VAT, contrary to HMRC’s position.
• This decision is not binding but is persuasive and could impact both customers (medical providers) and suppliers (locum agencies).
• Medical providers may benefit from VAT exemption on qualifying locum supplies, potentially allowing retrospective VAT corrections for up to four years.
• Locum providers may apply the exemption but face risks, including possible HMRC challenge, the need to ensure only qualifying supplies are exempt, and potential reduction in VAT recovery.
• Specialist advice is recommended for both customers and suppliers to understand the practical implications and compliance requirements.

Source: bdo.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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