Page 31 - P4304.1-V96_PS-Magazine-April 2024

Claiming VAT on Drug Spend

At the end of every month your finance manager, practice manager,
or even accountant should be asking the dispensary for the value of
Personally Administered items for that Month? I hope they do…

I suspect each practice will have their own way of managing this and
there will be several different methods used. I used to have a basket
that all PA scripts would go into, then at the end of the month I would
submit a list of products and value to the practice manager who would
in turn inform the accountant of the value of PA items for that month.

Common examples of items I would expect to have on this list would be:
• Hydroxocobalamin

• Haloperidol Injection

• Zuclopenthixol Injections
• Pessary

• Mirena Coil
(This is not a definitive list)

The purpose behind this is that the accountant will need to ‘Claim’
the VAT (Input Tax repayment) that the practice has paid on their
expenditure for that month. But the HMRC will only allow them to
claim the VAT for items that are not personally administered.

So the accountant will
subtract the value of PA
items for that month from
the total expenditure. The
‘PA Allowance’ takes care

of the VAT on Personally
Administered items.

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