UKHCA

United Kingdom Homecare Association
The professional association for homecare providers

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UKHCA Media Release

Treasury removes VAT for three months to cut PPE costs - 30/04/2020

From today (1 May 2020), PPE purchases to protect against Covid-19 will be free from VAT for a three-month period. This applies to everyone purchasing PPE, including homecare providers, care homes, personal assistants, family carers, charities and businesses, UK-wide.

A zero-rate of VAT will apply to sales of personal protective equipment (PPE) for Covid-19 from 1 May 2020 until 31 July 2020.

Colin Angel, Policy Director, UKHCA, said:

"The news that PPE supplies are to be VAT-free for three months during the pandemic is welcome. Homecare providers have found the rapidly rising cost of PPE extremely challenging.

"UKHCA wrote to the Treasury in April asking for the VAT status of social care services to become zero-rated, because homecare providers are unable to reclaim the VAT they pay on goods and services they purchase for their business.

"Government has previously said that a change was not possible because of EU agreements on VAT. However, the EU recently indicated support for temporary VAT reliefs during the pandemic. Although yesterday's measure is only for three months, it has proved that Government is able to make emergency changes while the UK is still tied to EU-VAT rules. That tie will end once the Brexit transition period finishes.

"We will continue to campaign for a permanent change to the VAT status of social care ('welfare services and goods'), as they are described by HMRC, from exempt to zero-rated, as this would make a significant difference to providers' increasingly unsustainable costs."

More information can be found here and at:

Revenue and Customs Brief 4 (2020): temporary VAT zero
rating of personal protective equipment (PPE), published 30 April 2020

Policy paper, VAT zero rating for personal protective equipment, published 30 April 2020

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