Changes in VAT rules may favour care homes

Posted on December 1st, by editor in Caring Times. No Comments

Certain operators could be faced with an increase of around 15% in the cost of using certain categories of temporary staff supplied by management agencies because of the VAT consequences which result from new regulations brought in by the Department of Trade and Industry in January. However, the services of registered and enrolled nurses provided by an agency will remain exempt from VAT, as will the supply of all other carers who carry out their duties within a registered institution, a situation which creates a clear distortion between home care and residential care, and could lead to a strong move in favour of the latter. Accountants and business advisers Hazlewoods say the new regulations make it illegal for employment bureaux to continue to trade unless they have actual contracts of employment with the temporary staff. Hazlewood’s care sector manager Rachel Dale said bureaux were now regarded as principals in the supply of the staff, and were required to charge VAT at 17.5% on the full amount receivable f

Comments are closed.

Latest blog posts

Extracare – the next best solution?

By Caring Times editor GEOFF HODGSON

Academics at Newcastle University say that an average of almost nine thousand more care home beds will be needed each...

Care homes discounted in end of life care

By Caring Times editor GEOFF HODGSON

I am sure that we all want those who we care for to experience ‘a good death’ when the time...

Perhaps I’m ‘app’athetic

By Caring Times editor GEOFF HODGSON

I’ve got an app in my toolbox that allows me to bang-in nails – I call it a hammer. I’ve...