Press Release: Recruitment Sector Receives VAT Clarity on Locum Doctors

The Association of Professional Staffing Companies (APSCo) has welcomed Friday’s publication of the HMRC's latest policy paper on the VAT treatment of locum doctors. It provides much-needed clarification, although it falls short of the comprehensive change the sector has been seeking.

For some time now, recruitment businesses have faced uncertainty over the application of VAT to locum doctor services following the First-tier Tribunal (FTT) landmark decision in Isle of Wight NHS Trust v HMRC. HMRC's latest policy paper now recognises that supply of GMC registered locum doctors may fall within the VAT exemption. There is an important distinction in place between GMC registered locum doctors and other healthcare professionals who are not VAT exempt.

Samantha Hurley, Managing Director at APSCo UK, commented:

“Whilst this is not the policy review outcome we would have preferred, it does at least provide clarity that did not exist earlier this year.

Members will now have a clearer understanding of the new VAT treatment for locum doctors and can make informed decisions regarding historic VAT claims and the future treatment of qualifying supply.” 

APSCo UK will continue to work with HMRC to ensure that the sector receives clear, consistent guidance and that our concerns continue to be heard. Members can find our guidance here.