17/12/2025
๐Important VAT Update for Locum Doctors & PCNs
HMRC has issued Revenue & Customs Brief 9 (2025), changing how VAT applies to locum doctors in certain arrangements.
๐น Many locum supplies previously charged at 20% VAT may now be VAT-exempt
๐น This follows a Tribunal decision accepted by HMRC
๐น There may be scope to recover historic VAT (subject to conditions)
๐น GP practices and Primary Care Networks (PCNs) should review their locum and staffing arrangements carefully
โ ๏ธ VAT in healthcare is complex โ especially for PCNs where staff recharges and funding structures can still create VAT risks.
๐ If you are a locum doctor, GP practice, or PCN, now is the time to review your VAT position.
๐ Read the full update on our website https://sial-accountants.co.uk/vat-locum-doctors-hmrc-update-2025/
๐ Or contact SIAL Accountants for specialist VAT advice for healthcare professionals.