VAT for Locum Vets
Most locum vets never need to think about VAT. A busy full-time locum on strong day rates can approach the threshold, and at that point the decision has real consequences for what practices pay you.
On This Page
- The Registration Test
- What It Means for Your Rate
- Schemes Worth Knowing About
The Registration Test
You must register when your taxable turnover exceeds £90,000 in any rolling 12 month period, or when you expect to exceed it in the next 30 days alone. The rolling test catches people out because it is not the tax year and not your accounting year.
Once registered you charge VAT on your fees, submit returns, and can recover VAT on business costs. Filing is under Making Tax Digital for VAT.
What It Means for Your Rate
Practices are almost always VAT registered themselves and can recover the VAT you charge, so adding VAT to your invoice usually costs them nothing in real terms. That makes registration far less painful for a veterinary locum than for someone invoicing consumers.
The point to settle in advance is whether your agreed day rate is treated as VAT inclusive or exclusive. Get that in writing with each practice before you register, not after your first VAT invoice arrives.
Schemes Worth Knowing About
- The flat rate scheme
- Simplifies returns by applying a fixed percentage to gross turnover instead of tracking input tax. The limited cost business rules removed most of the benefit for service businesses with low costs, which describes many locums, so it needs calculating rather than assuming.
- Cash accounting
- Lets you account for VAT when you are paid rather than when you invoice. Useful if practices are slow payers.
- Voluntary registration
- Rarely worth it for a locum below the threshold, because your costs are modest and the administrative burden is real.
Last reviewed 3 August 2026. [REVIEWER DETAILS REQUIRED BEFORE PUBLICATION]
Sources
- VAT registration thresholds, GOV.UK
Frequently Asked Questions
Do I have to charge VAT to the practices I work for?
What happens if I go over the threshold without noticing?
Check Where You Stand on VAT
If you are anywhere near the threshold, a short conversation now is much cheaper than a backdated registration later.