Goods and services offered by care operators are currently exempt from VAT, so providers do not charge VAT on their services. We want the UK Government to change the VAT status from exempt to zero-rated to allow providers to reclaim VAT on expenses.
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Any savings could then be re-invested into their businesses to benefit their frontline care workers and the people they care. The savings should also help combat the current crisis in social care regarding recruitment, retention, and overall cost increases.
By taking action now on VAT the Government can finally recognise the vital role played on the front line and support provider to future proof the care sector for years to come.