HMRC has issued updated guidance regarding the VAT treatment of certain locum doctor supplies. As a result, the VAT treatment of some Standard Placement arrangements for GMC-registered locum doctors has changed.
Liaison has reviewed the guidance and is implementing updates across our services and systems to support organisations in managing these changes.
What Has Changed?
HMRC's updated guidance confirms that supplies of GMC-registered locum doctors provided through Standard Placement arrangements may be treated as VAT exempt where the worker is carrying out services in their professional medical capacity.
This change relates specifically to qualifying GMC-registered locum doctors and does not apply to all worker groups. Other healthcare professionals, such as Allied Health Professionals (AHPs), Physician Associates and Anaesthesia Associates, remain outside the scope of this exemption.
What Does This Mean for Organisations Using TempRE?
To support compliance with the updated guidance, changes are being introduced within TempRE to improve visibility of VAT treatment for qualifying Standard Placement workers.
These enhancements include:
- Clear identification of VAT status for qualifying workers.
- Updated invoicing calculations where applicable.
- Reporting changes to reflect the revised VAT treatment.
- Improved visibility for trusts and agencies managing Standard Placement bookings.
Are Clients Required to Take Any Action?
For most clients, no immediate action is required.
Liaison is implementing the necessary system and reporting changes and will continue to communicate any important updates directly with affected organisations. Existing qualifying bookings will be managed through planned system updates where appropriate.
Does This Change Affect Direct Engagement?
No. Direct Engagement remains an established workforce solution and continues to provide benefits around workforce management, compliance, visibility and control. Organisations can continue to utilise Direct Engagement alongside other workforce supply models within TempRE.
How Liaison Is Supporting Clients
Liaison has extensive experience supporting NHS organisations with workforce compliance and VAT-related change. We are updating our systems, reporting and operational processes to align with the latest HMRC guidance and help clients manage the transition as smoothly as possible.