Government to give VAT from donated PPE to healthcare charities

VAT collected on donated personal protective equipment will be given to charities supporting the NHS and care workers, the government announced today (21 May 2020).

  • recent VAT revenue from PPE donated to the NHS and care homes will be given to charity

  • money to support frontline workers affected by Covid-19

  • donations made to Care Workers Charity and NHS Charities Together

The Care Workers Charity and NHS Charities Together will benefit from the government donation, which is expected to be worth hundreds of thousands of pounds.

The government introduced a temporary zero rate of VAT on PPE on 1 May to reduce costs for care homes and businesses buying the essential equipment during the Covid emergency.

The amount to be donated to charity will reflect the VAT collected on donations made from 1 March until 30 April - the period between PPE donations starting and when the zero VAT rate became effective.

Calder Valley MP, Craig Whittaker, said:

What a great gesture these donations through the VAT scheme are. It helps show our appreciation to those who make a difference in Calder Valley and across the whole country, day in, day out.

Chief Secretary to the Treasury Steve Barclay said:

Frontline health workers are fighting coronavirus day in, day out – in our hospitals, care homes and communities. Whilst we will never be able to fully express our gratitude to them, we want these donations to be a small sign of our appreciation.

From the Treasury and the whole government, we say thank you for all you are doing.

Health Minister Jo Churchill said:

I’m delighted that these donations will be going to such a worthwhile cause, helping those that selflessly care for others.

These charities are doing fantastic work, supporting our amazing NHS and social care staff, who continue to display incredible determination and resilience as they lead the struggle against this invisible killer.

VAT is due on assets donated by businesses where they paid and reclaimed VAT when they originally purchased the goods.

Businesses will have until the end of June to tell HMRC what VAT they have paid, giving them time to complete their usual accounts and identify these costs. Affected businesses should contact ppe@hmrc.gov.uk for further information.

NHS Charities Together is a membership organisation representing, supporting and championing NHS Charities. They support the NHS on a variety of projects.

The Care Workers Charity provides crisis cash grants to care workers. This includes those working in residential social care, home care, supported living care and day care.

The donation will be split equally between the two charities. Both the Care Workers Charity and NHS Charities Together are run nationwide and people across the UK will be able to benefit.

The Department for Health and Social Care will make the donation of the VAT on the government’s behalf.

Further information

HMRC estimates that the donation will be between £500,000 to £1 million.