HMRC has issued Revenue & Customs Brief 9 (2025) which confirms they will not be appealing the Isle of Wight NHS Trust First Tier Tribunal case. HMRC accept that the supply of locum doctors is exempt from VAT.
Suppliers of locum doctors can submit claims to HMRC to recover the VAT charged on these supplies within the last four years.
It is important to review any input VAT previously reclaimed on the assumption that the costs related to the business making taxable supplies. As these costs will now be associated with exempt supplies, providers should evaluate the impact on VAT previously recovered under partial exemption rules.
How the Xeinadin VAT Advisory can support your business
Our VAT Advisory team is here for you if you’d like to discuss the potential implication of this on your business. We can support businesses in assessing their historic VAT position, ensuring that the VAT exemption is applied to this supply and support with undertaking any partial exemption calculations to assess any recoverability of input VAT.
Your Xeinadin client manager can refer you to our specialist VAT Advisory team for support or you can email us on [email protected] to discuss this further.
