COVID-19: Care homes forced to pay VAT on PPE but NHS is exempt

Care leaders have questioned government VAT charges on PPE and testing kits for care home staff during coronavirus pandemic.

Leaders from the National Care Association and Care England have asked the treasury to remove VAT from essential items such as PPE and testing kits. The government has already removed VAT on PPE for the NHS amid the coronavirus crisis.

Nadra Ahmed, chair of the National Care Association said: “The treasury must remove VAT from all essential items used in social care services immediately, which includes PPE: it should be noted that he did this very early on for the NHS.

“This is equipment which is being sold at inflated prices to care providers who have no choice but to pay over 400 per cent more for items when they can get them; clearly the financial impact of the spend on these item will affect cashflow for providers.”

Ms Ahmed told ITV’s Good Morning Britain: “It’s not sustainable. We’ve said to the chancellor take the VAT off PPE, these are essential items. One provider had paid £8,500 for just one week’s worth of PPE.

“If the social care sector fails, if there is provider failure, the problem is going to be much bigger for the government.”

Care England chief executive Professor Martin Green told carehome.co.uk: “Care England has long been in discussion with HMRC/HMT regarding VAT on welfare services; it is essential that the government reviews the current VAT regime for nursing and residential care services to change their status from exempted from VAT to zero rated.

“As this juncture what matters most is that care providers are able to secure access to sufficient PPE and testing too. PPE and testing need to be seen in the same bracket, both are essential.”