Content
Reverse Charges
Beyond The Grave
Director's Two Hats
IHT Plan Fails
VAT And Cash
Amnesty International
An Inspector Calls
Losing A Bet
Caring Doctors
TAAR Brush
Made To Be Broken
Flat VAT
Safe Deposit
Tax On Gas
Working Late
Composite Companies
Excuses, Excuses
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There's no VAT on healthcare. That's been the case forever. But doctors' practices are having to get used to a change that came in on 1 May to what counts as "healthcare". Up to now Customs have reckoned that medical procedures have been covered by the exemption - if the doctor is wearing a white coat and using a stethoscope, there isn't any VAT. Now it's more complicated (why do these things never seem to get easier?). The European Court ruled a few years ago that the exemption for "care" should only properly apply if the doctor was trying to do the patient some good - to diagnose or treat their illnesses, or somehow to protect or improve their health. If a doctor is doing a procedure for some other reason, it won't be exempt. The sort of things that are most clearly affected are medical examinations for legal reasons - such as paternity tests, or to do with medical negligence and other lawsuits. If you are suing your previous doctor, the last thing you want is for your expert witness to cure you. That could cost you your damages claim! Most of us won't notice the change, but doctors will certainly need to consider it. If they are already registered for VAT, they will need to make sure that they account for the tax on everything that has stopped being exempt; if they aren't registered already, they will need to check to see whether they now have to be. Unfortunately, Customs have not issued very clear guidance. If this affects you, we will be happy to discuss it with you.  |