VATHLT2080 - Doctors: Liability to VAT of out-of-hours cover
The health and welfare exemption include supplies of deputising services where the provider of the services takes direct responsibility for medical care. This is covered by Item 5 of Group 7 to Schedule 9 of the VAT Act 1994 (VATA). This service is exempt under Item 1(a) or (d) of Item 5 of Group 7 to Schedule 9 of the VATA, when the relevant criteria are met. The relevant criteria ensure that medical care services are being supplied. (Please note, the medical professionals should fall within the exemption by virtue of Item 1 of Group 7 to Schedule 9 of the VATA where medical care services are being supplied. Item 5 was introduced to ensure that the full package of deputising services would be covered, including ancillary services (such as answering the telephones) which were not covered by Item 1).
If what is being supplied is something other than medical care then the exemption cannot apply, and the supplies will be taxable at the standard rate.
Where an out-of-hours service is provided by non-registered health professionals or amounts to no more than a telephone answering service, any ‘back-up’ services will also be taxable at the standard rate.
Locums
For information on the VAT liability of locum doctors, read Revenue and Customs Brief 6 (2026): VAT liability of the supply of temporary medical staff (locum doctors).