Today I showed my support for local hospices by attending a parliamentary briefing on VAT hosted by Sue Ryder, Help the Hospices and the National Council for Palliative Care.
The NHS is able to recover VAT on some non-business supplies (catering, laundry, staff training, vehicle and maintenance costs) which hospices cannot. This means that when an NHS hospice is transferred to a charitable provider a ‘VAT gap’ is left; this gap must be filled by either charitable funds or funds from the PCT.
The NHS is able to recover VAT on some non-business supplies (catering, laundry, staff training, vehicle and maintenance costs) which hospices cannot. This means that when an NHS hospice is transferred to a charitable provider a ‘VAT gap’ is left; this gap must be filled by either charitable funds or funds from the PCT.
Hospice providers have long campaigned on the issue of VAT that they cannot recover. They are calling on the Government to take a first step in levelling the playing field between the NHS and charities by ensuring that when a service is transferred to a charitable trust in the future, they are afforded the same recovery rights as the NHS.
One of Sue Ryder’s hospices incurs £44,000 of VAT per year on non-business supplies. If this service was managed by the NHS it would be able to recover 57% of the figure, enabling the hospice to provide 1500 more bereavement sessions for families or 2500 additional hours of carer support.
Hospices provide a vital service in supporting people affected by terminal illness and their families. Not being able to recover VAT is a significant burden which acts as a barrier to the expansion and development of this service provision.
Local people give generously to support the wonderful work hospices do in their communities. When they donate these funds, they expect them to go to frontline care delivery and not to meet additional VAT costs.
By not enabling hospices to recover VAT on certain non-business supplies, the Government is denying vital extra resources to those in need. I am therefore calling on the Government to level the playing field by affording hospices the same recovery rights as the NHS.
One of Sue Ryder’s hospices incurs £44,000 of VAT per year on non-business supplies. If this service was managed by the NHS it would be able to recover 57% of the figure, enabling the hospice to provide 1500 more bereavement sessions for families or 2500 additional hours of carer support.
Hospices provide a vital service in supporting people affected by terminal illness and their families. Not being able to recover VAT is a significant burden which acts as a barrier to the expansion and development of this service provision.
Local people give generously to support the wonderful work hospices do in their communities. When they donate these funds, they expect them to go to frontline care delivery and not to meet additional VAT costs.
By not enabling hospices to recover VAT on certain non-business supplies, the Government is denying vital extra resources to those in need. I am therefore calling on the Government to level the playing field by affording hospices the same recovery rights as the NHS.
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