VAT on medical services

Also on the subject of tax, the position has changed in regard to some medical services following a ruling in a European case.

The principle still seems to be that any service that is provided with the purpose of improving or caring for an individual’s health should not be taxed. However, there are services such as pre-employment screenings and post-retirement medicals that do not come within this definition and which the Inland Revenue has now said will be taxed as from 1 May 2007.

The full list we understand to be:

pre-employment medicals, pre-employment questionnaires, ill-health retirement medicals and other post-employment medicals, (if for the purpose of assessing pension eligibility), medical file copying at the request of solicitors or employees, and all risk assessments (including DSE assessments).

To the best of our knowledge, consultations with an occupational health physician remain untaxed on the basis, presumably, that the consultation is primarily designed to ensure that the employee’s health is not made worse as a result of their work.

THE INFORMATION CONTAINED IN THIS DOCUMENT IS OF A GENERAL NATURE ONLY AND SHOULD NOT BE RELIED UPON AS ADVICE IN ANY SPECIFIC SITUATION

For further information, please telephone your usual contact at Buck Consultants (Healthcare):

Tel: +44 (0)118 955 7700
Fax: +44 (0)118 955 7701
Email: healthcare@buckconsultants.com
Web: www.buckconsultants.co.uk
Abbot's House, Abbey Street, Reading, Berkshire, RG1 3BD, UK

Buck Consultants (Healthcare) Limited is authorised and regulated by the Financial Services Authority