Q: One of our partners is doing private work for patients not registered on our NHS list. This consists of minor operations, such as removing skin tags, moles and the like.
I need to know if we are invoicing these patients correctly by calling them private patients and accounting for the fees under minor surgeries and not charging VAT. Should VAT be added if the income takes us over the VAT threshold?
A: If you are charging the patients privately for minor surgeries then yes, you are correct in calling them private patients.
Although these patients are paying a fee, the principal activity of the service is to protect, maintain and restore the health of the individual. This means the fees are exempt from VAT.
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