In Medacy Ltd v HMRC [2019] UKFTT 0576, TC 07370, the First Tier Tribunal (FFT) concluded that pharmacist-led clinical services provided to GP practices were supplies of services, not staff, and therefore qualified for VAT exemption.

HMRC took the view that the ‘Pharmacist-led clinical services’ was, in fact, no different to the supply of locums and hence liable to the standard rate.

Medacy appealed on the basis that the supply is of medical care services (which is exempt).

The FTT concluded that Medacy was providing pharmaceutical services and its supplies were exempt. The fact that Medacy had medical insurance to cover the risk of being sued for medical malpractice was the decisive factor. The appeal was allowed.

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Medacy Ltd v HMRC