Another PA Item Query

VAT how much you pay out and how much you get back

FAQ Inclisiran, VAT and Profitability


Is Inclisiran still a loss for dispensing doctors?

Drug tariff is £55 AAH price is £45. 

With the clawback deducted it seems like there’s still a little profit plus dispensing fee, but I’ve read that we’d make a loss. 

Have I missed something in my workings? 

I’m trying to put all the training you have given us into good use but still not fully confident. 

Hope you don’t mind me asking. 


Hi thanks for this question, let’s go through the numbers and get to a conclusion.

I will make this fairly simple – hope that is ok?

The cost to you for purchasing is £45 which equates to a 16% discount] from Drug Tariff, but you will need to pay VAT on this @ 20% meaning the cost to you is £45 x 1.2 = £54

Your basic reimbursement is £55 less clawback [11.18%] = £48.85

You cannot claim VAT back from HMRC on this as it is a Personally Administered [PA] item however, you automatically got your VAT reimbursed by NHS BSA at 20% of the Drug Tariff price less clawback:

So, the VAT element is 20% of £48.85 which is £9.77

Therefore, your total reimbursement excluding dispensing fee is £58.62

As you have paid out £54 and you are being reimbursed £58.62 your gross profit is therefore £4.62 before any dispensing fee.

For any further queries on this and any other dispensing matters please email: