Category: Budget

Spring Budget 2023 Summary: VAT & Customs

Rob Case provides a summary of the Budget announcements for VAT, specifically for pharmacists, as well as a VAT consultation on energy savings relief, and also simplifying customs procedures.

VAT and Pharmacists

From May 2023 the VAT exemption for medical care services provided under the direct supervision of a medical practitioner is to be extended to include pharmacists in the UK.  Presently clinical services are not normally carried out by staff directly supervised by a registered pharmacist or pharmacy technician, but there appears to be an intention for them to become more involved.  Whilst this may lesson the load for GP practices, it could negatively impact the partial exemption position and therefore VAT recovery for Pharmacies.

VAT consultation on energy saving materials relief – improving energy efficiency and reducing carbon emissions

This new consultation which runs until May 2023 is seeking views on two potential areas of reform for this VAT relief (subject to the reduced rate at 5%) to meet its intended objectives more effectively.

The first potential area of reform is the inclusion of additional technologies and the second is to extend the relief to installations of energy saving materials in buildings intended solely for a relevant charitable purpose.

Other than wind and water turbines, the list of qualifying energy saving materials has remained the same since 2006, this consultation asks whether Battery Storage should be added to this list and invites proposals for other materials that may be added to the list.

It also asks whether the relief should be extended to include installation in a building intended for use solely for a relevant charitable purpose should be reinstated.

Both seem like sensible changes.

Simplifying Customs Procedures

Following Brexit, the movement of goods has proved challenging for many business, having to get used to new procedures and rules so the government is announcing its intention to deliver a number of improvements to Simplified Customs Declaration Process by:

  • Increasing the amount of time traders have to submit their declarations for imports and exports.
  • Allowing traders to submit one supplementary declaration for goods imported over the course of a month, reducing the total number of declarations that have to be submitted.

The government will also look enable more traders to be authorised to use certain customs facilitations  without a financial guarantee removing the cost of providing a guarantee.

If you have any questions about how the budget or its proposed reforms might affect you, do get in touch on 01242 776000 or