VAT & Partial Exemption Specialists for Healthcare
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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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.
Healthcare VAT is not like other sectors, because most of the work is deciding what is exempt in the first place. Our service covers:
We attribute costs to exempt, taxable and mixed use so you recover the input VAT you are entitled to and no more.
We apply the standard method or agree a special method with HMRC, run the annual adjustment and keep the workings on file.
We monitor your taxable turnover against the VAT registration threshold and register or deregister at the right time.
Making Tax Digital compliant software with a digital link from records to return, accessible wherever you are.
Returns prepared, reviewed and filed on time, and we deal with HMRC directly if your treatment is ever questioned.
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
Healthcare VAT is technical and the penalties for getting it wrong are real. Here is why practices bring this work to us:
Exemption, partial exemption and mixed supplies in medical and dental settings are our daily work.
We document your apportionment method and keep the workings ready if HMRC ever asks.
Prepared, reviewed and submitted before the deadline, every quarter, with no late-filing points.
Ask us before you launch a new service and we will tell you the VAT position in advance.
If a return is queried or inspected, we deal with the correspondence and the visit for you.
Reviews of earlier periods regularly recover VAT that was never claimed, within the four-year limit.
VAT is not why you went into healthcare. Our three-step process takes it off your desk quickly:
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.
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.
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.
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.
We use Xero, Quickbooks, Sage & many other online software.
Meet, Call, E-mail or Skype to your dedicated accounts manager.
Free telephone & email support
throughout the year.
Our team have over 100 years of combined experienced.
Never Miss any deadline with our automated email reminders.
We’re an ICAEW, ACCA & AAT accredited Firm.
Take a back seat and let our expert accountants handle everything. Here’s how easy it is to get started with us:
Reach out to us, and we’ll discuss your needs and how we can help your healthcare practice thrive.
We’ll send over a simple letter to formalise our partnership and get everything in motion.
If you're switching, we’ll take care of contacting your previous accountants to make the transition smooth.
From there, sit back and relax. We’ll manage your accounts, taxes, and everything in between, keeping your practice running smoothly.
Yes. We handle the complete VAT registration process.
Our experts know the specific VAT for healthcare in London inside out. This helps you avoid expensive errors and fines.
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.
Yes, we can. We combine our VAT services for healthcare with full bookkeeping. This gives you a complete accounting service.
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.
Yes, all our VAT for healthcare in London services comply with UK tax laws.
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.
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.
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.
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.
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.
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.
