VAT Exemption for Temporary Medical Staff: HMRC Confirms Locum Doctors Qualify After Tribunal Decision

• HMRC confirms that supplies of locum doctors are VAT exempt under Item 5, Group 7, Schedule 9, VAT Act 1994.
• The exemption applies to staff supplied by employment businesses, not just out-of-hours GP cover, following the Isle of Wight NHS Trust v HMRC [2025] decision.
• Businesses that charged VAT on locum doctor supplies in the last four years may claim a refund using HMRC’s Error Correction procedure.
• Suppliers must consider the impact on input tax recovery and partial exemption calculations when making refund claims.
• HMRC will publish updated guidance and is reviewing its policy in this area.

Source: rossmartin.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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