VAT & Partial Exemption Specialists for Healthcare
VAT for Healthcare in London
VAT is the single most misunderstood tax in healthcare. Medical care by a registered professional is exempt, but cosmetic treatment, dispensing, medico-legal reports, room hire and product sales are not — which means most practices make mixed supplies and can only recover part of their input VAT. Our VAT for healthcare service in London gets that split right. CruseBurke has advised British businesses since before the Second World War.
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Healthcare VAT Clients We Work With
We handle VAT for healthcare businesses of every kind across London, and the exempt and taxable split is different in each one:
Exempt clinical care versus taxable medico-legal reports, expert witness work, cosmetic procedures and occupational health services.
Exempt NHS and private dentistry alongside taxable teeth whitening, facial aesthetics and retail product sales.
Partial exemption calculations, room hire and consulting-room licences, catering, car parking and staff recharges between group companies.
Zero-rated dispensed prescriptions, standard-rated retail lines and apportionment between exempt sight tests and taxable dispensing.
Our Healthcare VAT Services
Healthcare VAT is not like other sectors, because most of the work is deciding what is exempt in the first place. Our service covers:
Input VAT Recovery & Attribution
We attribute costs to exempt, taxable and mixed use so you recover the input VAT you are entitled to and no more.
Partial Exemption Calculations
We apply the standard method or agree a special method with HMRC, run the annual adjustment and keep the workings on file.
VAT Registration & Deregistration
We monitor your taxable turnover against the VAT registration threshold and register or deregister at the right time.
MTD for VAT & Digital Records
Making Tax Digital compliant software with a digital link from records to return, accessible wherever you are.
VAT Return Filing & HMRC Enquiries
Returns prepared, reviewed and filed on time, and we deal with HMRC directly if your treatment is ever questioned.
VAT Problems Healthcare Practices Run Into
Almost every healthcare VAT error we are asked to fix comes from one of the following. Each one is either lost recovery or an assessment waiting to happen:
Assuming all medical income is exempt from VAT
Cosmetic and aesthetic treatment not treated as taxable
Medico-legal reports and expert witness fees missed
Partial exemption never calculated or annually adjusted
Input VAT over-claimed on costs used for exempt work
Staff recharges between group companies handled wrongly
Crossing the registration threshold without noticing
Why Choose Us for Healthcare VAT in London
Healthcare VAT is technical and the penalties for getting it wrong are real. Here is why practices bring this work to us:
Healthcare VAT Specialists
Exemption, partial exemption and mixed supplies in medical and dental settings are our daily work.
A Defensible Method
We document your apportionment method and keep the workings ready if HMRC ever asks.
Returns Filed On Time
Prepared, reviewed and submitted before the deadline, every quarter, with no late-filing points.
Ongoing VAT Support
Ask us before you launch a new service and we will tell you the VAT position in advance.
We Handle HMRC
If a return is queried or inspected, we deal with the correspondence and the visit for you.
Recover What You Are Owed
Reviews of earlier periods regularly recover VAT that was never claimed, within the four-year limit.
Our Simple 3-Step Healthcare VAT Process
VAT is not why you went into healthcare. Our three-step process takes it off your desk quickly:
1. Initial Consultation (It’s Free):
We begin by getting to know your practice and understanding your unique needs. This step ensures we have a clear picture of your operations and your goals.
2. Customised Plan:
Based on our initial discussion, we create a personalised plan designed specifically for you. The aim is to keep everything organised and easy to follow. You can rest assured that your numbers are being handled with expert precision.
3. Ongoing Support & Updates:
From there, we take care of the ongoing work and keep you updated with reports. You’ll always know what’s happening, and we’re always here to answer your questions, ensuring you have a clear picture of your financial health at all times.
Why CruseBurke
Is managing your finances stressing you out? Let our expert healthcare accountants in London help you build smart, long-term strategies. We’ll provide a yearly analysis that keeps your financials in check and your practice on track.
Technology Driven
We use Xero, Quickbooks, Sage & many other online software.
Dedicated Accountant
Meet, Call, E-mail or Skype to your dedicated accounts manager.
Unlimited Support
Free telephone & email support
throughout the year.
Experienced Team
Our team have over 100 years of combined experienced.
Free - Email Reminders
Never Miss any deadline with our automated email reminders.
Yes, We Are Chartered!
We’re an ICAEW, ACCA & AAT accredited Firm.
How to Join/Switch
Take a back seat and let our expert accountants handle everything. Here’s how easy it is to get started with us:
Get in touch
Reach out to us, and we’ll discuss your needs and how we can help your healthcare practice thrive.
Letter of Engagement
We’ll send over a simple letter to formalise our partnership and get everything in motion.
Previous Accountants
If you're switching, we’ll take care of contacting your previous accountants to make the transition smooth.
We Do the Rest
From there, sit back and relax. We’ll manage your accounts, taxes, and everything in between, keeping your practice running smoothly.
FAQs about Healthcare VAT in London
Does CruseBurke handle VAT registration for healthcare practices?
Yes. We handle the complete VAT registration process.
How does our service prevent mistakes and HMRC fines?
Our experts know the specific VAT for healthcare in London inside out. This helps you avoid expensive errors and fines.
Is it easy to switch to our VAT services?
Yes. It’s super easy. We manage the whole move from your current accountant or in-house system. We will handle all the details for a smooth change.
Can we help with both VAT and bookkeeping?
Yes, we can. We combine our VAT services for healthcare with full bookkeeping. This gives you a complete accounting service.
How do I know which package suits my practice?
We will discuss your needs and goals during our first meeting (It’s free). Then, we will recommend a package that fits your requirements and ensure you get the support you need.
Are CruseBurke services compliant with UK regulations?
Yes, all our VAT for healthcare in London services comply with UK tax laws.
Is all medical treatment exempt from VAT?
No. Medical care supplied by a registered health professional for the purpose of protecting, restoring or maintaining health is exempt. Purely cosmetic work, medico-legal reports, expert witness fees, occupational health services and retail product sales are generally taxable, which is why most practices make mixed supplies.
Is facial aesthetics or teeth whitening subject to VAT?
Usually yes. Where the primary purpose is cosmetic rather than therapeutic, the supply is standard-rated. Once that income plus other taxable income exceeds the registration threshold you must register, so it needs monitoring as the service grows.
What is partial exemption and does my practice need it?
If you make both exempt and taxable supplies you cannot recover all your input VAT. Partial exemption splits your costs into directly attributable and residual, then recovers a proportion of the residual, with an annual adjustment at year end. Any mixed practice needs it.
Do I charge VAT on medico-legal reports?
Generally yes. A report prepared for a court, insurer or solicitor is usually not treated as medical care of the patient, so it is standard-rated. This is one of the most common areas where consultants are assessed by HMRC.
Can I reclaim VAT on equipment for my clinic?
Only to the extent it is used for taxable supplies. Equipment used solely for exempt clinical care carries no recovery, equipment used solely for taxable work is fully recoverable, and mixed-use equipment goes through the partial exemption calculation.
Can you review past VAT returns and recover overpaid VAT?
Yes. HMRC generally allows corrections going back four years. A review of earlier periods often finds under-recovered input VAT or wrongly treated income, and we handle the correction or claim for you.