Home care and the broader social care sector plays a vital role in caring for people in our communities and supporting the over-stretched healthcare system. The past few months have highlighted the value of social care, keeping people safe and well in their own homes and allowing individuals to return home from hospital, freeing much-needed beds.
However, the sector is operating under increasing financial pressure and a major contributor to this is the VAT providers are unable to reclaim on their expenses. This is because goods and services provided by regulated social care organisations are exempt from VAT, meaning they do not charge VAT on services.
Care providers cannot reclaim expenses such as rent, utilities and training, putting many businesses in a precarious financial position.
This year, our Director, Michelle Fenwick, has built a consortium of home care providers who are seeking zero-rated VAT for social care providers. In August, Michelle and the fellow founding members took part in a webinar with BBC News Presenter and Business Correspondent, Ben Thompson, to launch the Zero Rate VAT for Social Care campaign to see a change in the sector’s VAT regime.
A petition has now been launched to encourage the government to respond and discuss the change in parliament. Click here to add your name to the petition.
The regulated social care sector as a whole is made up of around 18,500 organisations, many of whom are small businesses struggling with the escalating costs. The provision of more PPE for carers that have been essential in the delivery of care is just one example of the extra costs’ providers have had to pay out for.
By making VAT zero-rated for the social care sector, providers can invest more in their business and service. Essential equipment, higher quality training and new technologies can be introduced into services, in addition to investment in the care workers, with better wages and rewards.
Signing the petition takes no less than 2 minutes! Click the button below to add your name to the Zero Rated VAT for Social Care petition and help us seek a fairer VAT regime for the sector.