Personal Care (VAT)

HC Deb 04 February 2002 vol 379 cc692-3W

Mr. Andrew Turner

To ask the Chancellor of the Exchequer whether VAT is payable on the wages element of home care provided by private sector organisations; and if he will make a statement. [32700]

Mr. Boateng

Personal care services provided by private businesses are VAT exempt when performed or directly supervised by qualified nurses to meet the medical needs of the client. VAT is chargeable on all other care provided commercially in the home.

When the Secretary of State for Trade and Industry lays before Parliament revised regulations governing the conduct of the private recruitment industry, Customs and Excise will introduce a VAT concession for the wages element of commercially provided home care.