As outlined in our previous newsletters, there are changes to the VAT liability of certain medical services which came into place on 1 May 2007.  These affect NHS Trusts that generate non-NHS medical income from activities such as clinical trials or occupational health services.

An example is ‘post-mortem examinations and reports’ provided to coroners, which are now fully taxable.

The changes from 1 May represent a timely opportunity to correctly determine the VAT liability of all non-NHS income.

We can conduct a systematic review of all income generation streams, both debtor and cash in order to determine the correct VAT treatment.  Our work would involve talking to the relevant staff at the Trust to gain a good understanding of your income streams and reviewing a given list of financial reports, contracts, sales invoices and other supporting documentation which we would ask you to produce.

The results of this review would then be used to produce a tailored report to be used to determine the correct VAT liability to be applied to your income streams.  This can then be referred to by your staff on a regular basis to ensure that VAT is accounted for correctly on all income.

Please contact us if you are interested in having a review carried out.