Radfield Home Care Franchising is leading a nationwide campaign to change the VAT status of social care throughout the UK.
As a founding member of the ‘Zero Rated VAT for Social Care’ campaign, Radfield Home Care has joined forces with other home care organisations to launch a campaign for a fairer VAT-status for social care services across the UK.
The change would mean home care services can reclaim VAT on essential business expenses, such as PPE, operating softwares, regulation fees and other business expenses that are required to provide care and support services.
Currently, home care services do not charge VAT to their vulnerable clients, but cannot reclaim VAT on their business expenses.
Radfield Home Care’s franchisor and campaign committee member, Alex Green believes the change would have a significant impact on social care services across the UK: “The VAT status of social care has long been a topic of discussion. Even before Covid-19, regulated social care services experienced a lot of expenses. However, unlike the majority of other industries – including those providing similar products or services to ourselves, such as mobility products and stairlifts – we are unable to reclaim the VAT on these business operating expenses.
“Providing parity with other industries would enable investment to improve the social care provision across the country. For example, carer wellbeing, pay and training strategies, as well as technologies and client engagement programmes that would increase the quality of care and number of clients we could support. The cost to the Treasury would be minimal, but it would provide great benefits to clients, staff, the economy and the under-pressure NHS.”
In light of Covid-19, the Government has provided temporary VAT-relief on the cost of PPE. This was recently extended until October.
The UK Home Care Association (UKHCA) is hosting a live webinar on Thursday 6th August at 16:30 with Radfield Home Care and other founding members to discuss the campaign with other social care providers. This will be hosted by BBC’s business correspondent, Ben Thompson and can be joined here.
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