What to beware if the VAT-man nears

We are all used to paying VAT on many of our day-to-day purchases, but for private practices it is the exception rather than the norm to be VAT-registered. This is in contrast to the vast majority of private businesses outside of the medical profession which are VAT-registered.
 
Ian Tongue explores the more common situations where VAT registration may be required and highlights some grey areas where you need to be prepared.

monster-vatThe law requires you to register and charge VAT on your income where your ‘taxable supplies’ exceed £85,000 a year on a 12-month rolling basis.

Taxable supplies is a term within the legislation that covers a huge range of goods and services and basically means that VAT must be charged if you are supplying enough of it.

Also within the legislation are special exemptions to charging VAT and the most notable one for doctors is in relation to the provision of medical services by a health professional, which is regarded as an exempt supply for VAT purposes.

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