Bluebird Care is working alongside other top home care providers to campaign for social care provision to be zero-rated for VAT.
Bluebird Care is working alongside other top home care providers to campaign for social care provision to be zero-rated for VAT. Services offered by care providers are currently exempt from VAT, but top home care providers have called for the status of social care provision to change from exempt to zero-rated. This would allow them to reclaim VAT on expenses.
Due to Covid-19, operational business costs have risen. The volume of PPE required has increased while the price of PPE has soared. Other costs to social care providers include regulatory fees, staff training expenses, rising insurance costs, mileage, and investments in technology to allow for remote work.
Bluebird Care has teamed up with other leading home care providers to write to Rishi Sunak with the proposed updated VAT status.
Wayne Smith, Acting Managing Director & Finance Director of Bluebird Care, said:
“We operate in a highly regulated sector, there are lots of costs of running a business like ours that are often not given full consideration. “Margins were incredibly tight before the pandemic and now are even more so, which makes it incredibly difficult.
Savings from the zero-rated VAT status would be invested back into the home care businesses to support their care teams and customers”.
Wayne joined several other industry leaders on an hour-long webinar hosted by BBC journalist, Ben Thompson. The leaders included, Martin Jones, chief executive of Home Instead Senior Care, Ken Deary, chief executive of Right At Home, Lisa Fyfe finance director from Caremark, Alex Green, director of Radfield Home Care, Yvonne Tomlinson, chief executive at KarePlus and Michelle Fenwick, director of Heritage Healthcare.
“The Covid-19 pandemic has shined a light on the care sector like never before. Finally, those who work so hard to care for the most vulnerable in society are getting the recognition they deserve. With this updated VAT status, home care providers will be able to give more back to their teams and customers. It would be a relatively small cost to the Government, but would completely transform the sector – helping businesses that are contributing so much to their local communities.
I am proud that Bluebird Care is part of such a worthwhile campaign.”