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 (45secs)
Who has to be registered for VAT (1min 04secs)
The three main reasons why a GP might be registered for VAT (1mins 47secs)
What services incur VAT – provision of services and staff (2mins 54secs)
Holding the contract and keeping control (5mins 12secs)
Other services – admin and back-office functions attract VAT (6mins 19secs)
Part of an overall contract – an example (6mins 58secs)
How does a Cost Sharing Group work? (8mins 23secs)
Members of a legal entity (9mins 16secs)
On-costs but not a management charge (10mins 23secs)
Is VAT chargeable on what PCNs are being asked to do? (11mins 13secs)
Employing a Link Worker (12mins 47secs)
The VAT implications for the three models for PCNs:
1 The Lead Practice Model (13mins 26secs)
Is the lead practice registered for VAT (15mins 28secs)
2 The Flat Model – the easiest model? (16mins 38secs)
Liabilities of joint employment (17mins 45secs)
3 The Federation Model (18mins 26secs)
The big issues with federations (19mins 54secs)
The federation as a cost sharing group (20mins 36secs)
Core members/non-core members of networks (21mins 43secs)
Setting up a legal entity now – is it worth it? (23mins 06secs)
Employing staff and pensions (23mins 57secs)
Other things to consider (25mins 06secs)
Don’t go it alone (25mins 51secs)
Getting in touch and finding out more (26mins 20secs)
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