VAT on locum services

VAT on locum services

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My client formed a Ltd Co in March 2012 and was not instructed by the accountants to register for VAT.

He has now been informed by his insurers against HMRC investigation that he should be registered on the grounds of functionality. He operates through a Ltd Co who offer his services as a GP through the corporate vehicle. Till now he has not been VAT registered but it appears he should as the agency have no control over his services, as opposed to him  offering direct to the NHS when control can be exercised by them and thus VAT is not chargeable.

The situation would appear to be that a backdated registration should be applied for and then VAT on past fee invoices charged to the agency. This is not what the client would want as he has other interests that this would conflict with.

Any thoughts or guidance or indeed experience of this would be appreciated.

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By Wiganer Elaine
11th Oct 2013 15:13

Rapid Sequence Ltd

It looks as if this may be something to do with the recent Tribunal case Rapid Sequence Ltd where the company provides medical locums to NHS Trusts.

Look at the article on  https://www.accountingweb.co.uk/blog-post/provision-medical-locums-no-lo...

Your client needs to determine if the facts of this case are similar to how his business operates.

If so and the decision is not appealed by the taxpayer and won, then the provision of medical locums will indeed be no longer exempt!

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By zacharyjonah
22nd Oct 2013 09:54

Devil's Advocate - not sure of the answer

If the GP is providing medical services through his corporate vehicle - is this not still an exempt service as ultimately he shall be bearing the risk (after all if he was self employed this would be the case)? I guess the question would be does the corporate vehicle turn the provision of his services into a supply of staff or does the company remain a provider of exempt medical services?

 

I agree per the Rapid Sequence case the indication is that agencies will have to register for VAT unless overturned, however, not sure if it applies directly to a GP working as a locum through incorporating his own company. 

Would be interesting to hear other views

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