VAT liability advice

The healthcare and public sector face some difficult areas for VAT purposes:

• When is healthcare VAT exempt, and when does it become standard rated?

• Should I charge VAT on supplies of staff? What about the nursing agency concession? And how are locum doctors treated if they are a ‘deputy’? (click here to find out).

• What happens if my agreement for 'welfare services' is contracted with a non-CQC regulated provider who then sub-contracts to a connected care home operator (CQC regulated)? Do I need to contact HMRC before we sign?

• Can I recover the VAT incurred on supplies as long as it is a ‘contracted-out service’? What if I also use it to generate some income? What if I can’t find the service on the list, or if I am buying it with goods included?

• The restaurant offers eat in and takeaway food, but has not had electronic tills until recently. How do I know how much of the income should be liable to VAT at the standard or zero-rate of VAT?

• We’re selling drugs to private companies, patients on prescriptions, other NHS Trusts and care homes. When should I account for VAT, and when can I recover VAT?

These are just a handful of examples that are everyday issues for the sector. We can help you to navigate through everyday VAT compliance, and the more unusual, one-off issues.