The purpose of this Memorandum of Understanding is to: -
set out the NHS and University understanding of the role of joint staff of NHS organisations and Universities who are engaged in both teaching and/or research as well as the delivery of patient care
- clarify selected duties and responsibilities of their employers
- document established practice in respect of those staff
- confirm that such arrangements are outside the scope of VAT
The memorandum was developed in response to the University of Glasgow - v - HM Revenue and Customs VAT tribunal ruling (EDN/03/109) released on 29th April 2005. The VAT Tribunal found there had been a supply of staff from the university to the NHS, where University employed clinical academic staff provided patient care in NHS organisations.
Such supplies are liable to VAT at the standard rate. However, the Tribunal did not fully consider the question of the precise contractual arrangements and whether "joint working" arrangements existed.
Memorandum of understanding about jointly managed staff (PDF 139k)