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Low Spend Surcharge

From February 2020, if your qualifying spend is less than £5,000 per month you will be charged £350 for that month.

Excluded products

If you only buy products from manufacturers who have a single or dual wholesaler agreement with Alliance Healthcare, then you won't be charged.

If you purchase products from manufacturers who do not have a single or dual wholesaler agreement with Alliance Healthcare, then you will be charged if your qualifying spend is less than £5,000.

How we calculate the qualifying spend

We calculate the qualifying spend by adding up your purchases of products from manufacturers with

  • dual wholesaler agreements
  • three or more wholesaler agreements
  • manufacturers that do not have a reduced wholesaler agreement

Our supply chain arrangements page lists manufacturers and products which are exempt from the low spend surcharge. You can also use this page to find out if products from a particular manufacturer contributes to your qualifying spend.

All items must be delivered within the current month for them to count towards that month’s sales. All items delivered after the end of month will then contribute towards the next month’s sales.

How to avoid a charge?

To avoid the charge customers will require a qualifying spend of more than £5,000 per month or ensure that all spend is on exempt products. The downloadable spreadsheet, detailing all manufacturers and their products included in a Supply Chain Arrangement and the relevant surcharge exemptions per line, can be found here. (this does not include those products which currently do not have a supply chain agreement). If you need support in reaching the qualifying spend thresholds please do not hesitate to contact the Customer Solutions Team on 0800 032 0579, where a member of the team can help you.

How do credits affect qualifying spend

If you receive a credit on a product, this reduces the qualifying spend.