Sadly, many aesthetics clinics even when operated entirely by a qualified medial practitioner, may well find that they have been breaching the rules about charging VAT to their clients, either knowingly or not.
It has however been a well-known issue over recent years and this has spread by word of mouth (albeit largely ignored) across this industry. Most practitioners are aware of this hot potato!
So, if you are in the frame for such a Revenue attack what can you do to avoid a catastrophe or limit the damage?
HMRC are entitled to look back several years and can go back 20 years. HMRC normally go back 4 years for VAT. Either way that can amount to ruin for most businesses.
Mitigation can arise in several ways.
All registered medical professionals who provide treatments that are done primarily for cosmetic or aesthetic purposes, need to review their practices. Those who find that their VAT-taxable annual turnover is over £85,000 would have to become VAT registered, with all that this entails. Others can take steps to document well the medical issues arising.
Robust records are needed. These must not be written up or produced or altered after the event.
PRO-ACTIVE ACTION IS NEEDED NOWShare