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The Pharmacists' Defence Association (PDA) has advised locums that they are under "no direct obligation" to help contractors gather data for an HM Revenue and Customs (HMRC) investigation. However, they may choose to assist the large contractors "to help ensure HMRC reach a final decision based on all the relevant facts," PDA said. The HMRC investigation into the tax status of locums forms part of the extension of the IR35 arrangements into the private sector. The IR35 came into effect from April to ensure that individuals working like employees through their own limited company pay the same income tax as paid by those employed by a company. In recent weeks, some contractors have contacted locum pharmacists to assist them in data gathering on their work arrangements.

The government has extended VAT exemption from Monday (1 May) on healthcare services carried out by pharmacy staff under the supervision of pharmacists. HM Revenue and Customs has issued a note detailing the change to the VAT treatment of medical services. The Government said this will bring the VAT treatment of pharmacists in line with other registered health professionals providing medical services to the public. The Pharmaceutical Services Negotiating Committee (PSNC) said: "This is something that PSNC has been seeking Government agreement on for a long time, including in recent CPCF negotiations." PSNC believes that the extension of this VAT exemption will help as community pharmacy businesses try to make better use of the skill mix in their teams both now and in the future. "Not only does it enable contractors to review the VAT status of any locally commissioned services currently provided by non-registered pharmacy staff but also, in time, it could be used to amend nationally commissioned services to allow support staff to provide certain parts. For example, following a recent amendment to the service Directions, pharmacy technicians are now able to perform blood pressure checks as part of the Hypertension Case-Finding Service and deliver the Smoking Cessation Service.