Surgeons criticise new VAT rules on cosmetic surgery

By Nomia Iqbal
Newsbeat reporter

Surgeons have criticised government plans to put VAT on breast enhancement, tummy tucks and other cosmetic surgery.

Updated guidelines mean patients must pay 20% tax on any work that does not treat a recognised medical condition.

The British Association of Aesthetic Plastic Surgeons (Baaps) says deciding who should pay VAT would be difficult as many people have surgery for psychological reasons.

Tax officials say the guidelines are merely clarifying an existing rule.

However, Baaps claims the idea is simply a means for the government to raise extra cash from the industry, which last year carried out more than 38,000 operations.

Cosmetic surgery is currently exempt from VAT if its main purpose is the protection, maintenance or restoration of health.

But the updated guidance from HMRC (HM Revenue & Customs) says patients will only avoid paying the tax if they have been diagnosed with a medical condition.

It is thought that up to £500m extra could be raised every year.

HMRC says an aesthetic treatment can help people feel better about their appearance, but that in itself is not enough to make the treatment VAT exempt.

'Cowboy clinics'

Douglas McGeorge, former head of Baaps and a consultant plastic surgeon, believes the proposal could risk patients' health and end up costing more in the long run.

"Getting plastic surgery isn't the same as a quick beauty treatment," he says.

"People think carefully about it. It's not like you're getting a haircut.

"If you make surgery 20% more expensive it will push people abroad into cowboy clinics and as a result we'll see more damaged patients coming back.

"It will cost us a lot more in the long run."

Judgements over who is getting surgery for purely cosmetic reasons would also be a problem, he adds.

"I agree there are some people who some would think should pay, but how is the tax man going to decide that?

"It would be breaching patient confidentiality. Also if they plan to backdate tax, they could bankrupt surgeons."

HMRC declined to be interviewed but said in a statement the VAT charge is not a new policy and that it is simply clarifying an existing rule that has been in place since 2007.

"Medical care provided by registered health professionals in hospitals or clinics is and will continue to be VAT free, along with cosmetic services carried out for therapeutic purposes," it said.

"Medical treatment for purely aesthetic reasons has been, and continues to be, liable to VAT at the standard rate."

'Suicidal thoughts'

Twenty-two-year-old fitness instructor Kerry Gibson says she is "desperate" to get plastic surgery.

Breast implants are the most popular cosmetic enhancement

She lost 12 stone through exercise and dieting, but despite the hard work wants a tummy tuck to get the confidence she lacks.

"I've always been very big, when I was 15 my dad left. I emotionally ate and I ended up weighing 22 stone.

"I have loose skin after losing all that weight," says Kerry.

"My belly button is lower than it should be. I just don't feel comfortable. I want to look normal and get my confidence back."

Abdominoplasty would remove any excess fat and tighten the abdominal muscles.

The operation would cost about £6,000 before VAT.

However, under HMRC's rules it would qualify as cosmetic surgery and could be subject to 20% tax.

Kerry would have to pay a total cost of £7,200 and is worried it would put the procedure out of her reach.

"I've had suicidal thoughts about not getting the surgery," she explains.

"I am trying hard to raise the money but adding VAT to it would just make it impossible.

"I can't afford that and I don't think it's fair I should have to pay more."