HMRC Updates VAT Guidance: Exemption for Temporary Medical Staff and Locum Doctors Clarified

• HMRC has updated its VAT guidance on the supply of temporary medical staff (locum doctors) following a tribunal decision.
• The First-tier Tribunal ruled that VAT exemption applies to supplies of locum doctors as deputies, even when filling vacant posts, contrary to HMRC’s previous interpretation.
• Businesses can claim a refund of overpaid VAT on locum doctor supplies from the last four years by adjusting VAT returns or submitting an error correction notification (form VAT652).
• HMRC advises businesses to consider the impact on input tax recovery and to claim only the net amount when seeking refunds.
• Detailed guidance from HMRC will be published in due course.

Source: icaew.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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