Dear Simon, 



I recently asked the VAT Enquiry Office for a written ruling on the issue of whether VAT is applicable on non-medical help charges. 



From the VAT guidance on the Inland Revenue web pages we had previously determined that 

our customers are eligible to purchase goods and services at zero-rate because of their disability; 

the service provided is for their personal use; 

however the service did not appear to be eligible to be supplied at zero-rate. 



Therefore we have always charged VAT, however we have occasionally been asked by customers whether we should do so.



The following guidance from Notice 701/7 'Reliefs for disabled people' is what we used to make our decision -



2. When to zero rate goods and services for disabled people

2.1 When can supplies be zero-rated?

Supplies of goods and services are only zero-rated when all of the following conditions are met:

	the customer is eligible to purchase supplies at the zero rate - see Section 3; 

	the goods are for the personal or domestic use of the customer - see paragraph 3.5; 

	the goods and services are eligible to be supplied at the zero rate - see paragraph 2.4.



The VAT Office wrote to me (12 March 2004) providing a detailed explanation and including a ruling which stated 'Although the service is for the benefit of the disabled person, the supply provided by you is not an eligible good or service........the service is subject to VAT at the standard rate.'



If you would like more information please ring me to discuss.



Best wishes, Marie





 

Marie Norris

Learner Support

President Park

President Way

Sheffield S4 7UR

 

tel: 0845 4565857

fax: 0800 0830841

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-----Original Message-----

From: Simon Bloor [mailto:[log in to unmask]] 

Sent: 24 April 2004 14:16

To: [log in to unmask]

Subject: Re: VAT on personal support via Non-medical helpers allowance



OK...thought this might be the case but wondered if anyone had indeed

successfully argued the point - seems not...would this be the sort of issue

the Round Table could take up? Perhaps in the age of joined up government it

surely should be possible for the DfES people to talk to the VAT people and

establish some ground rules? Does anyone know how to get an item on a Round

Table agenda? 



We do need to be careful though that we are talking about the same thing

because as I understand it there is both a Zero rating rate and an exemption

from VAT which are actually different things...albeit resulting in same

end...



But finally is the widespread belief that LEAs who pay VAT able to claim it

back actually true and if this is the case is there any way they are able to

recycle this funding for student support...of coure where I'm heading is a

concern that as we are moving into a system which is much more transparent

and above board in terms of employment legislation / rights etc by moving

support workers onto contracts with all that entails - tax / employers NI /

benefits + 17.5% VAT on all of that etc the VAT levied can make considerably

limit the amount of support available for some students. Exemption from VAT

would do much to stretch this support out as far as is possible without

having to resort to not entirely legal or satisfactory methods...



Regards



Simon Bloor

Access SUMMIT







-----Original Message-----

From: Discussion list for disabled students and their support staff.

[mailto:[log in to unmask]] On Behalf Of Michael Trott

Sent: Saturday 24 April 2004 12:12

To: [log in to unmask]

Subject: Re: VAT on personal support via Non-medical helpers allowance





In a message dated 23/04/04 16:24:36 GMT Daylight Time,

[log in to unmask] writes:



<< Dear all



 Has anyone ever tried to make a case for VAT exemption on support delivered

via Non-medical helper allowance...seems to me that its pretty similar to

assistive technology resources..and in theory could be exempt...but theory

is one thing...



 Regards



 Simon Bloor

 Access SUMMIT >>



Local VAT officres have a great deal of discretion, which they use to their

advatange. I have argued with then twice that needs assessments sjhould be

zero rated but they will not accept it. Some public sector centres get way

without chraging but this depends on their VAT status but some HEI based

centres charge VAT. An independent assessor got away without charging VAT

for a long time but eventually had to start charging. Hence, the answers in

regard to supoport is much the same - it depends on your local VAT office

and the VAT status of the organisation supplying the service.



Mick Trott



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