Teresa has written to the Chancellor George Osborne urging him to implement VAT breaks for charities that deliver NHS services. Last week Teresa met with organisations Sue Ryder, the National Council for Palliative Care and Help the Hospices to discuss their campaign to close the VAT gap that exists between the NHS and charitable organisations.
Under current tax rules the NHS is able to recover VAT on non-business supplies, however charities providing healthcare services are not able to do the same. When a charity takes on delivery of an NHS service they have to pay VAT, and this means many charities have to divert a significant amount from their fundraising budgets to cover the cost.
“There will be greater outsourcing of NHS services now that the Government’s Health reforms have been pushed through Parliament. If NHS services have to be outsourced I would prefer charities to take them on as their not-for-profit status means money is primarily directed into better care for patients and not private companies’ profits.
“The Chancellor needs to look urgently at closing the VAT gap so that charities are not disadvantaged and unable to afford to take on NHS services.”