VAT Flat Rate Scheme and medical professionals

VAT Flat Rate Scheme and medical professionals

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We act for a psychiatrist making taxable supplies. The flat rate scheme could be attractive depending upon the rate applicable. Does any user have experience with this profession or have an informed view?

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By spidersong
16th Jan 2015 10:51

Not had any clients of that ilk...

but really a registered health professional that makes enough of a proportion of taxable supplies that having to pay VAT on their normally exempt treatment related income may be beneficial to them?

Are they retired or something and only do talk show work and newspaper articles?

In any case since psychiatric treatment by anyone registered in "the register of medical practitioners...[or]..the register kept under the Helath Professions Order 2001", as any psyshicatrist licensed to practice in this country would be would be exempt, then the fact that they're a psychiatrist won't help with the flat rate scheme, we'd need to know what their taxable supplies actually are in order to attempt to find a rate.

And if we say psychiatry is their predominant business sector then whatever VAT rate they pay on income that would normally carry no VAT seems unlikely to be a benfit, especially if it's at the 12% that HMRC think is likely to apply to medical services.

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By ChrisPoole
16th Jan 2015 14:16

Flat rate

Thanks

 

Medico-legal work (report writing) is standard-rated. That's virtually all the work our client now does.

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By spidersong
16th Jan 2015 17:24

In that case...

I'd be looking at the 12% for "Any other activity" - there's no other really good categories that provide a good match either for medical consultancy / legal consultancy, and it does seem to be the one HMRC would argue least with as their little list of suggested professions under it includes:

 - Hospitals, nursing homes, medical or dental services - Law and order or Judicial activities

So would seem the nearest fit for Medico-Legal work, IMHO better than anything else currently on the list.

It's obviously not the 'Barrister or Lawyer' 14% area, and although he may be working for 'Injury Claims Services' (14.5%) I can't see HMRC mounting a succesful argument that his services actually fall under that definition.

it might I suppose be something that could be shoehorned in "Investigation or Security" depending on the type of report but that would seem a stretch and still result in 12% anyway.

I must admit I had assumed that most Psychiatrists involved in the report writing game would still be in practice, but I suppose thinking about it once your foot's in the door you probably find people wanting to use you more and more.

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