VAT for hospices
We started January 2011 by wrapping our Chief Executive, Paul Woodward, in red tape.
We were protesting about the bureaucracy facing charities in relation to VAT.
We wanted to highlight the inequality between charities and the NHS as the latter is able to recover VAT on certain non-business supplies that charities are not.
- catering supplies
- laundry and cleaning supplies
- staff training
- vehicle costs
- waste disposal
- maintenance and repairs
The VAT burden of these costs on charities providing public services is significant.
For instance, one of our hospices incurs £44,000 in VAT per year on non-business supplies. If this service was managed by the NHS it would be able to recover 57% of this figure.
These funds would allow the hospice to either:
- employ a nurse for around 44 weeks
- provide 1,500 bereavement sessions for families who have lost a
- provide 2,500 hours of support from a carer