Heritage Healthcare continues VAT fight

Heritage Healthcare is one of six home care franchises that have teamed up to call for a change to the sector’s VAT status.

Currently, goods and services offered by the care companies are exempt from VAT, meaning providers don’t charge any VAT on their services. However, this classification is causing trouble for the sector, as it means they cannot reclaim VAT on any of their expenses.

Leading names in the industry have grouped together to call for a change in the sector’s VAT classification. If it was adjusted from exempt to zero-rated, many companies believe they could save money and run their operations more efficiently. Vulnerable clients would not pay any more, but it would allow these vital care providers to reclaim on expenses such as PPE, utilities and rent.

While it would cost the Treasury a small amount more, these industry leaders believe it would be significant in helping to keep “financially under pressure social care providers in business”. And at such a challenging time for the UK’s business owners and workforce, any move that can help businesses save money is bound to be welcomed.

During a webinar on 6th August, representatives including Michelle Fenwick, director of Heritage Healthcare, said that any savings the franchises make would be re-invested into their businesses. It would allow their franchisees and company-operated teams to offer an even better standard of care to their clients during such an important time.

The influential group have previously written a letter to Chancellor Rishi Sunak, calling for him to make the change back in May. While PPE was made free from VAT for a three-month period for businesses like home care franchises, they claim it wasn’t enough.

If you’d like to become part of this growing franchise network, you can find out more about Heritage Healthcare’s exciting opportunity on its client page.