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This is the episode all about VAT. No, come back! It’s complex but vitally important stuff for PCNs and you’ll regret not listening… We are delighted to welcome Katie Collin, Client Services Partner at Ramsay Brown Chartered Accountant to explain it all. She covers who needs to be registered for VAT, what services incur VAT, Cost Sharing Groups and the VAT implications of the three models for PCNs. She has also produced a frequently asked questions document which you can access at the end of these Show Notes.

Show Notes

VAT – the hot topic of the moment (0:45)

Who has to be registered for VAT (1:04)

The three main reasons why a GP might be registered for VAT (1:47)

What services incur VAT – provision of services and staff (2:54)

Holding the contract and keeping control (5:12)

Other services – admin and back-office functions attract VAT (6:19)

Part of an overall contract – an example (6:58)

How does a Cost Sharing Group work? (8:23)

Members of a legal entity (9:16)

On-costs but not a management charge (10:23)

Is VAT chargeable on what PCNs are being asked to do? (11:13)

Employing a Link Worker (12:47)

The VAT implications for the three models for PCNs:

1 The Lead Practice Model (13:26)

Is the lead practice registered for VAT (15:28)

2 The Flat Model – the easiest model? (s16:38)

Liabilities of joint employment (17:45)

3 The Federation Model (18:26)

The big issues with federations (19:54)

The federation as a cost sharing group (20:36)

Core members/non-core members of networks (21:43)

Setting up a legal entity now – is it worth it? (23:06)

Employing staff and pensions (23:57)

Other things to consider (25:06)

Don’t go it alone (25:51)

Getting in touch and finding out more (26:20)

You can find Ramsay Brown’s “VAT and Primary Care Network FAQs” here

The Ramsay Brown website is here

Katie’s email address is katiecollin@ramsaybrown.com