VAT – Nursing agency concession
HMRC have announced a change to the nursing agency concession which allows for certain services provided by nursing agencies to be VAT exempt.
HMRC’s new approach removes an anomaly which otherwise would have applied from 1 October 2010 when the legal requirement for nursing agencies to be registered under the Care Quality Commission (CQC) was removed. This is as a result of changes announced in the Health and Social Care Act 2008.
Without this announcement certain businesses supplying nurses would no longer have been able to meet the necessary conditions to use the nursing agency concession and VAT would have had to be charged on the full cost of the supply.
This amendment published by HMRC will ensure that nursing agencies that currently benefit from the concession, as members of the CQC, continue to do so from 1 October 2010.