The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
HMRC has published a new VAT Brief which explains the rules for the VAT treatment of COVID-19 testing services.
The service of COVID-19 testing is treated as medical care where it involves administration of the test to the patient and the provision of the results by a medical professional.
In line with the normal VAT rules that apply to such care, the service of COVID-19 testing can only be exempted where it is:
carried out and supplied by a relevant health professional within the meaning of items 1, 2, 2A or 3 of the VAT Act 1994, Sch 9, Group 7
supplied by a non-registered person, but the services are wholly performed by a relevant health professional ― the exemption does not apply where the health professional is a dental technician
carried out by a non-registered person acting under the supervision of a relevant health professional ― the exemption does not apply where the health professional is a pharmacist, pharmacy technician or dental technician
supplied by a hospital or state regulated institution ― in this case, the exemption also covers the supply of any goods in connection with the supply
The supply of COVID-19 testing by a body regulated by the Care Quality Commission (CQC) (or equivalent in Northern Ireland, Scotland & Wales) for other activities, but not COVID-19 testing, remains standard-rated. The exemption can apply if the supply meets another of the tests required to qualify.
HMRC considers that the objective purposes of COVID-19 testing are diagnosis and the protection of human health. This also applies to tests taken for international air flights. Accordingly, such testing may be exempt medical care subject to meeting the usual requirements.
HMRC has published an equality impact assessment of the changes to the NIC treatment of termination payments and sporting testimonials introduced in April
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