A webinar to launch the campaign seeking a review of the current VAT status of the social care sector took place yesterday (6th August 2020) and was attended by over 160 representatives from the sector.
The campaign is the brainchild of a consortium of home care providers, the founders of which are Ken Deary (Right at Home), Martin Jones (Home Instead Senior Care UK), Michelle Fenwick (Heritage Healthcare), Lisa Fyfe (Caremark), Alex Green (Radfield Homecare), Wayne Smith (Bluebird Care) and Yvonne Tomlinson (Kare Plus).
Hosted by BBC News Presenter and Business Correspondent, Ben Thompson, the webinar outlined a vision for the future where all social care provision is zero-rated for VAT so that providers are able to reclaim VAT on business expenses.
Speaking at the webinar, the founders outlined why a root and branch review of the sector’s VAT status is so critical and how any savings would be re-invested into their businesses for the benefit of the carers they employ and to improve the client experience.
Speaking about this, Ken Deary, CEO of Right at Home said, “The pandemic has shone a light on the vital work carried out by the social care sector like at no time before. We have seen our carers applauded alongside healthcare workers with a real recognition and appreciation for the work they do. And that’s fantastic and makes us all feel immensely proud.
“By taking action now on VAT the Government can finally recognise the vital role we all play on the front line and support us to future proof the homecare sector for years to come.”
The consortium argues that the sector, which is made up of many small, independent operators is experiencing increasing cost pressures, much of which is due to the high level of regulation they operate under.
The group argues that they should operate under the same VAT regime as mobility aid retailers, which serve practically the same client base, who are already zero rated.