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Healthcare & Medical Accountants

Specialist accounting for private clinics, dentists, opticians, and healthcare professionals with NHS income tracking and medical expense compliance.

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Written by Asrah Abbas, ACA / ACCA — Principal at Westfin Accountants Ltd
Chartered accountant with 12+ years of UK practice experience. Member of the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA).
Last updated:

In plain English

Medical practice accounting straddles NHS pension annual allowance, private practice IR35, locum tax, and the complex VAT exemption for medical services. Westfin handles NHS Pension Scheme calculations, private practice incorporation, and locum agency vs self-employed status.

Sector-specific tax matters

The reliefs, schemes and risks that consistently apply in this sector — with HMRC source links so you can verify everything we say.

NHS Pension Annual Allowance

Annual allowance £60,000; threshold income £200,000; adjusted income taper from £260,000 — tapered down to £10,000. Triggers AA tax charges for high-earning consultants.

Reference (gov.uk)
VAT exemption for medical services

Services by registered medical professionals for protecting, maintaining or restoring health are exempt — but cosmetic and medico-legal work can be taxable.

Reference (gov.uk)
Locum & IR35

Locums via their Ltd Co are inside IR35 if the engager exercises supervision, direction or control. Off-payroll determination sits with the engager.

Reference (gov.uk)

Common Healthcare & Medical Accounting Challenges

NHS vs private income tracking

VAT exemption for medical services

Equipment and medical supplies

CQC compliance costs

Medical indemnity insurance

Associate dentist income splits

Our Healthcare & Medical Solutions

Dual income stream tracking

VAT exemption applications

Capital expenditure planning

Associate commission calculations

Practice profitability analysis

NHS claim reconciliation

Specialized Services for Healthcare & Medical

NHS and private income reconciliation

VAT exemption compliance

Associate and locum payment tracking

Medical equipment depreciation

CQC regulatory cost tracking

Healthcare-specific tax reliefs

Healthcare & Medical FAQs

Are medical services VAT exempt?

Most medical services by regulated professionals (doctors, dentists, opticians) are VAT exempt. However, cosmetic procedures and some alternative therapies are standard-rated.

How do you handle associate dentist income?

We track associate earnings separately, calculating commission splits on NHS and private work, deducting lab fees, and producing monthly statements for each associate.

Can you help with NHS claim reconciliation?

Yes, we reconcile NHS payments with submitted claims, track UDA delivery, and identify discrepancies to ensure you receive correct NHS income.

Ready to Get Started?

Speak to our Healthcare & Medical accounting specialists today