CTM represented a team of consultant doctors (cardiologists and radiologists) who offered CT scans and other related services in order to diagnose heart issues.

The business had traded VAT Exempt, but HMRC argued that, because they did not perform any treatment and were only concerned with the scanning/diagnostics, the services were standard rated.

They argued that the business was not involved in “providing the medical care that will protect, maintain or restore the health of the individual concerned”, as legislation requires, believing this was only being provided later by the patient’s medical practitioner. Despite arguments being put forward by the company accountant, substantial VAT Assessments were raised.

If HMRC were right and the services were standard rated, the business model would fail and substantial sums invested in the imaging and other specialist equipment would be lost.

CTM was instructed after a Review by an independent HMRC Officer proved unsuccessful and we appealed the decision to the Tax Tribunal.

Supported by various Tribunal and Court of Appeal authorities, CTM argued that the Consultants did not simply operate the scan to detect heart issues, but provided a full diagnosis and treatment plan based on their interpretation of the scan. That, we argued, did in fact form part of process to “protect, maintain or restore the health of the individual concerned.”

HMRC withdrew their VAT Assessments this month, which was within 4 weeks of the appeal being submitted, acknowledged CTM had provided additional clarity and confirmed the supplies were VAT exempt.

CTM advise on a wide range of VAT technical matters and often help to prevent the need for lengthy and costly litigation.