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Can a Private Home Care Service agency charge VAT?

Can they charge VAT on care?

I deal with a Private Home care agency, who have recently started charging VAT on the care services they provide. I was on the understanding that care from was exempt from VAT.  Is this the case?  If so how can I claim the VAT back that has been charge?

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16th Jan 2018 22:13

Depends on exactly what they're supplying but it's more than possible that you're correct.

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17th Jan 2018 10:14

all they are supplying is care.

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to sootyandsweep
17th Jan 2018 10:35

sootyandsweep wrote:

all they are supplying is care.

Fill in the blanks. On the basis of what you say, all anyone can say is "maybe".

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to lionofludesch
17th Jan 2018 10:54

Trust me when I tell you that coherent thought is difficult when you have Harry Corbett's hands up your collective ar535.

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17th Jan 2018 10:27

Care or carers? Who are they charging the VAT to?

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to Portia Nina Levin
17th Jan 2018 11:50

private care agency. supplying just care no support. we have a personal care plan.

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to sootyandsweep
17th Jan 2018 12:28

sootyandsweep wrote:

private care agency. supplying just care no support. we have a personal care plan.

So we're dragging it out of you bit by bit.

You are private individuals who are receiving care from a commercial firm of carers ?

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to lionofludesch
17th Jan 2018 12:40

No. It's an agency; providing care as agents!

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to Portia Nina Levin
17th Jan 2018 12:57

The scales are falling from my eyes.

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to Portia Nina Levin
17th Jan 2018 23:00

right, my mother receives Homecare from a Private care agency and they are charging her VAT for the care received.

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to sootyandsweep
17th Jan 2018 23:16

https://www.gov.uk/government/publications/vat-notice-7012-welfare/vat-n...

The service of having homecare is able to be vat exempt (Section 2.1) ... only if the agency is authorised by a regulatory body such as Care Quality Commission (Section 3.3).

If the agency isn’t regulated, then they will charge VAT. If they’ve only just started to do so, then either they’ve just VAT registered, or just lost their regulated approval.

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to sootyandsweep
18th Jan 2018 07:47

sootyandsweep wrote:

right, my mother receives Homecare from a Private care agency and they are charging her VAT for the care received.

At last !! That wasnt so hard, was it?

Agree with the above - if the agency is registered, they shouldn't be charging VAT.

If they're not registered, you need to be asking why they're not registered.

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to lionofludesch
18th Jan 2018 15:00

they are registered with CQC.

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to sootyandsweep
18th Jan 2018 10:23

I don't agree with the above. I think the agency is providing carers, rather than providing care. It can only be providing care if it is acting as principal, and the term agency strongly suggests that it isn't.

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to Portia Nina Levin
18th Jan 2018 13:57

You could be right.

The facts aren't clear.

I'm not sure S+S understand the significance of the word "agency" in all this.

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to Portia Nina Levin
18th Jan 2018 14:43

Of course the agency provides the care, the carers are employed by the agency. I have read HMRC section and Care vs support it isn't 100% clear. I also contacted HMRC and they weren't helpful either. My understanding of the whole VAT thing is that if an agency is providing care they are VAT exempt therefore SHOULD NOT be charging VAT to their service users, however if they are classing it as support they can then charge VAT. My mother doesn't receive support she receives care and the company I use advertises themselves as an Homecare service, NOT support service.

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to sootyandsweep
18th Jan 2018 15:14

sootyandsweep wrote:

the carers are employed by the agency

Are you sure about that? Are you sure that they are not self-employed, or providing their services via their own limited companies? Because it is key, and it must also be the case that "the agency" is directing them.

It is also relevant that they "have recently started charging VAT". Have you asked them why? It suggests a change of working practice, or a control visit by HMRC.

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to Portia Nina Levin
18th Jan 2018 15:49

I was right. The OP doesn't grasp the significance of "agency".

S+S - I can only suggest that you ask the "agency" the grounds on which they charge VAT. Then, if we get a reply, at least we'll have something we can properly debate. I think you may be right but using words like "agency" doesn't help your case.

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to lionofludesch
19th Jan 2018 21:00

Homecare service company then instead of agency. I have asked why they are charging VAT, but their reply was vague and not at all transparent. Lionfludesch, it is not a debate I came on this forum for some answers.

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By Ruddles
to sootyandsweep
19th Jan 2018 22:06

It might help if you were to tell us exactly what the vague and opaque response was.

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to sootyandsweep
19th Jan 2018 23:29

sootyandsweep wrote:

... it is not a debate I came on this forum for some answers.

S+S - with the greatest of respect, hardly any area of tax is straightforward, which is why we ask very specific questions to try and get the salient facts. Non-accountants (and regrettable accountants) come on this forum and don’t provide all of the necessary information and/or inadvertently use the wrong name for things (eg company/business/partnership) which can dramatically affect the answers we give. No-one is saying it’s your fault, we just need to get to the actual facts.

In you post you take the tone that the “debate” is us having a go at you, when in fact we’re just trying to get the answers we need to give (free, let’s not forget) advice. If you start to get shirky, you will get slated.

More often than not, there is a debate amongst ourselves as different people have different experiences and consider different pieces of tax legislation and practices.

It’s like a machine - you state your question, provide more info when requested and wait for an answer to pop out at the bottom that is (mostly) agreed upon.

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to Portia Nina Levin
19th Jan 2018 20:56

We all due respect I am fully aware that this company I am using to provide care aren't self employed carers, they are fully employed. Also the company is a partnership and not a Limited Company. Yes we have asked why they are charge VAT, the reply wasn't vague.

But thank you for your input.

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to sootyandsweep
19th Jan 2018 22:05

It was vague or it wasn't vague ?

We can only help you if you're not so economical with the facts. "Agency" is not just a word - it changes the whole ball-game.

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By Ruddles
to lionofludesch
19th Jan 2018 22:11

Neither is "company" - as in "the company is a partnership" :¬)

(Not directly relevant to the analysis, but just another illustration of the difficulty in trying to advise folks when they're unable to properly explain the facts.)

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to Ruddles
19th Jan 2018 22:43

thanks everyone found my answer.

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to sootyandsweep
19th Jan 2018 23:06

And ...?

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to sootyandsweep
20th Jan 2018 09:43

sootyandsweep wrote:

thanks everyone found my answer.

Not from us. There's not enough information in thed question - despite our attempts to extract it, you seem incapable of putting together more than a dozen words.

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