VAT ON DEMENTIA CARE - help me send this viral

[Vik54]

Folks - I need your help please. We require 100,000 signatures on a petition for a subject to be raised in parliament. My family has exhausted all routes of enquiry with HMRC and local MP and this seems to be our last resort.

 

This is not a petition against elderly folk paying for their own residential care once it becomes necessary. The petition highlights the need to address a PFI health provision loophole that means that some elderly people with dementia end up paying VAT on their care.

 

Most care homes charge fees that are exempt from VAT - as per European and UK law. The law states that "the provision of care, treatment or instruction to promote the physical or mental welfare of elderly, sick, distressed or disabled persons..." should be VAT exempt. In addition, "all care and treatment services provided within a regulated residential care home.." should be VAT exempt.

 

However, in a few cases, because of a business loophole, elderly residents, many of whom are suffering from dementia, are being charged VAT. For some, who still have assets above the threshold of £23250 (having been forced to sell their homes) this loophole means that, not only are they being charged income tax on their small pensions, but they are also being charged VAT on the residential care services they are purchasing. My gran pays over £120 a week in VAT alone.

 

HMRC and Government officials and ministers say that there is no law being broken. How quick they are to shout "foul" when large companies find loopholes to avoid paying tax, and yet our Government is "unable" to stop this immoral and unfair VAT charge.

The unfairness is exacerbated by the fact that when placed in care by Local Authority as their assets are below threshold their care is not subject to VAT as the authority is exempt. Private individuals do not have this ability.

Dementia is a mental illness - it is not recognized as such, and does not entitle the sufferer to continuing care funding.

 

This VAT charge, although it only affects a small minority of dementia care residents, is immoral. It also means that elderly people will reach their asset threshold sooner, and then become completely reliant on state funding (once assets fall below £23k) surely an example of the Government shooting itself in the foot as individual assets will be depleted much more quickly?

 

Please sign the petition and share with your friends - I guarantee you if you don't have someone in your family affected by dementia you will know someone who does.

 

http://epetitions.di...petitions/47719

[docwra]

Ive got no problem signing the petition but can you explain how EU (and therefore HMRC) law says that Care Homes should be exempt but HMRC then say there is no law being broken? Thats a pretty clear cut contradiction there, which in my experience HMRC dont tend to do ......... that often anyway

[Paddy78]

Signed and posted on FB.

[Vik54]

Ive got no problem signing the petition but can you explain how EU (and therefore HMRC) law says that Care Homes should be exempt but HMRC then say there is no law being broken? Thats a pretty clear cut contradiction there, which in my experience HMRC dont tend to do ......... that often anyway

 

You're right to query it DOcwra...Essentially where a company registered with the CQC has formed a subsidiary company to provide care services that subsiduary company is registered under the parent company and therefore they are exempt from the laws about VAT and care homes. It is immoral to do this but apparently not illegal.

I will happily forward all the correspondance that has passed between my mother and HMRC if you care to wade your way through it

[Will370z]

Will definitely sign up - done

Edited April 4, 2013 by Will370z

[tmJak]

Signed up.

 

My Dad is an Admiral nurse and my Nan had dementia so I have a lot of sympathy for dementia sufferers and their families. Hope your petition takes off!

[ewan221]

Vic I take it this is a care home based in England ?

[docwra]

Signed, but TBH you have to ask who is benefitting from this scam - its not the care companies, they pay on any VAT they charge to HMRC ............ which makes this particularly unsavoury, HM Gov are effectively using their own rules to profit from their own loophole. Thats then compounded as you say by the residents becoming reliant on state funding more quickly, ridiculous.

 

Good luck

[The Bounty Bar Kid]

signed

[The Bounty Bar Kid]

and shared on fb

[Vik54]

Vic I take it this is a care home based in England ?

 

yup it is

[ioneabee]

signed

[Kev T]

Signed up, good luck with the campaign.