Care leaders group calls on Chancellor to Scrap VAT on care business spending

The Care Leaders Network is calling on the Government to change the law to allow care homes to reclaim VAT.

The campaigning group, which is made up of more than 250 leading care business owners, will send a letter to the Chancellor of the Exchequer Rishi Sunak on Monday 6 July asking for the tax status of care businesses to be altered.

Network founder, Simon Parker, says that amending the law would help care businesses to survive the COVID-19 crisis.

Simon Parker. Care Home News
Simon Parker

“Currently for every pound they spend, care businesses are charged 20% VAT but are not able to claim back that 20% unlike other businesses.  This means that for every pound they spend, their actual outlay is £1.20,” he says.

Care homes are urged to show their support for the campaign by contacting Parker directly before next Monday so he can demonstrate the strength of feeling there is in the industry.

“Care home businesses have seen a massive spike in costs because of having to pay for things like additional PPE and at the same time as dealing with significant decrease in income because they are unable to admit residents,” he says.  “My fear is that without this support from the government, this immense financial pressure will become untenable for many businesses.”

Simon Parker can be contacted via email simon@spandp.co.uk.

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