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Personally Administered Items in General Practice.

This second section is the technical bit so read on to understand the VAT
rules behind the decision guide you need to use to create your PAI report
each month.

What “personally administered” means for the NHS.

In NHS payment terms, a personally administered item is a prescription
item prescribed and administered by a member of the practice team and
attracts payment under GMS SFE 23.4. NHSBSA’s definition is explicit, and
the ePACT2 “Personally Administered Items” report follows this concept.
(https://www.nhsbsa.nhs.uk/access-our-data-products/epact2/report-
information/personally-administered-items). There is a great little YouTube
video on here explaining the report BUT for us in dispensing practice it will
cause confusion so read on!
In the Dictionary of Medicines and Devices (dm+d), items which are classed
by the NHS as personally administered are tagged with a ‘PADM indicator’
however it does not mean that the product will always be administered and
this is where the EPACT” Personally Administered Report can be misleading
as Dispensing Practices can (and often do) dispense a PADM-flagged
product for a patient to take away, rather than administer it in the surgery.
(https://dmd-browser.nhsbsa.nhs.uk/)
What the PADM indicator does, is to make the item allowable on FP10
submission from a non-dispensing practice but also creates a VAT
allowance payment back to practice for that item. In the case of items that
have not been dispensed, this is a bonus as the VAT will be claimed back
via the VAT return as well as you receiving the VAT on your drug statement.
In other words you will get the VAT back twice – as long as those items are
not on your PAI report.
This is where your EPACT2 report will mislead as it contains all your
prescriptions submitted for items with a PADM indicator NOT just those
personally administered.
VAT basics for GP practices (why PAIs are different)

Two strands of VAT are relevant:
1. Medical care (professional services) supplied by registered medical
practitioners is VAT-exempt. HMRC makes clear that when a GP
personally administers a drug (e.g., vaccine, injection), the drug is part
of the single exempt supply of medical care (the Dr Beynon judgment).
There is no separate zero-rated drug supply in that moment. (https://
www.gov.uk/hmrc-internal-manuals/vat-health/vathlt6065)

26 PS Magazine | VAT and PAI’s

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