VAT - pilots discriminated against by HMRC
Gentlemen
I know there is a “Medical” forum on PPrune, and it is obviously where I am most active, but I’d like some wider opinions on this topic, which seems to me to involve blatant discrimination by HMRC against pilots of all sorts, commercial and private.
As I am sure you all know, pilot medical examinations have been made subject to VAT in recent months. HMRC’s logic and reasoning for this is that you do not come to see someone like me primarily to improve your health or well-being. It’s not the same as going to a GP or hospital clinic with a problem or symptom, and asking for advice or treatment. It’s a commercial transaction, and therefore taxable.
As well as being an AME authorised by the CAA to carry out class 1 and 2 pilot medical examinations and issue JAR medical certificates, I also hold a similar position regarding seafarer medical exams. The medicals required by seafarers are regulated by the MCA (Marine and Coastguard Agency), and are less frequent and less thorough than those required by any pilots.
Since becoming VAT registered I have treated all these certification medicals equally and have (albeit reluctantly ! ) added 17.5% to medical fees across the board.
Yesterday, however, I received an e-mail from the MCA drawing my attention to advice on VAT on medicals as published by HMRC. You can see the page to which I am referring here :
http://www.hmrc.gov.uk/manuals/vatmanual/vathealth/VATHLT2130.htm
It’s quite clear, under “pilots, application for licence, fitness to fly, etc” that all medicals are chargeable at Standard Rate (SR). But look just above that entry and you’ll see “medical examinations – see PN 701/57 . . . . . .”. Under that heading is the bit which leaves me aghast : - Seafarers - to ensure someone working off-shore does not go to sea with a medical condition which is likely to deteriorate
Gentlemen - I see at least part of the reason for your all having to have class 1 JAR examinations annually to be to ensure that we try to pick up any condition which might be likely to deteriorate if you work at 35000 feet for ten hours on the way to Singapore or Hong Kong !
Any comments ? Does BALPA regard this as discrimination against pilots ?