Partner Ian Tongue presents a recap on Value-Added Tax (VAT) and how this may affect your private practice.
VAT is a tax we are all familiar with, as it is paid on the majority of the goods and services we buy.
Sometimes an invoice will separate out VAT, but in much of our day-to-day expenditure the price we pay is inclusive of VAT, particularly in the retail world.
When running a business, it is normal to have to be VAT-registered, but within the medical profession it is less common for private practices.
The reason for this is that medical services are usually exempt from VAT, meaning that VAT does not need to be considered. But there are some exceptions which this article considers further.