Concern raised over removal of VAT-exemption from orthodontic aligners
The change has significant implications for both patients and orthodontic practitioners
The British Orthodontic Society (BOS) has expressed deep concerned over HMRC’s recent decision to remove orthodontic aligners from the list of VAT-exempt dental appliances. The change has significant implications for both patients and orthodontic practitioners, said the BOS, and risks increasing the cost of orthodontic treatment at a time when affordability and access to care are already under pressure.
Removal of VAT exemption from orthodontic aligners will increase the cost of providing treatment and for practices that are unable to absorb these additional costs, patients will face higher treatment fees. The decision risks placing orthodontic care beyond the reach of some individuals and may widen inequalities in access to treatment.
The BOS said it was also concerned that this decision may signal a broader reassessment of the VAT treatment of orthodontic appliances. Many laboratory-manufactured orthodontic appliances, including retainers and removable appliances, are integral components of orthodontic treatment. These appliances are not optional extras, said the BOS, they are clinically necessary devices used throughout the treatment process and in the long-term maintenance of treatment outcomes. Any extension of VAT to these appliances would further increase the cost of orthodontic care for both providers and patients.
Matt Clover, Director of Clinical Practice for the BOS, said: “Of particular concern is the potential impact on NHS orthodontic services for children and young people. NHS orthodontic contracts are already financially challenging to deliver, with practices operating within fixed contract values that have not kept pace with rising costs.
“If VAT is applied to orthodontic appliances required as part of NHS treatment, providers will be unable to recover these additional costs through NHS contract payments. This would further erode the already limited margins associated with NHS orthodontic care. The British Orthodontic Society is concerned that increasing the cost burden of providing NHS orthodontic treatment may make some NHS contracts financially unsustainable.”
At a time when access to NHS dentistry remains a significant challenge across the UK, any policy change that undermines the viability of NHS orthodontic services risks reducing the number of providers willing or able to deliver care. The unintended consequence could be that more NHS orthodontic contracts are handed back, further limiting access to treatment for children who need it most.
The BOS has been actively engaged in discussions surrounding the VAT treatment of orthodontic appliances. The society submitted evidence to both the High Court proceedings and the subsequent appeal relating to the VAT status of orthodontic aligners. In addition, a member of the society’s board has met directly with HM Treasury officials to discuss the potential impact that the introduction of VAT on orthodontic appliances could have on patients, practitioners and the sustainability of NHS orthodontic services.
The British Orthodontic Society remains committed to working constructively with HMRC and government to protect patient access to orthodontic care and to safeguard the future of all orthodontic services.