Folks - I need your help please. We require 100,000 signatures on a petition for a subject to be raised in parliament. My family has exhausted all routes of enquiry with HMRC and local MP and this seems to be our last resort.
This is not a petition against elderly folk paying for their own residential care once it becomes necessary. The petition highlights the need to address a PFI health provision loophole that means that some elderly people with dementia end up paying VAT on their care.
Most care homes charge fees that are exempt from VAT - as per European and UK law. The law states that "the provision of care, treatment or instruction to promote the physical or mental welfare of elderly, sick, distressed or disabled persons..." should be VAT exempt. In addition, "all care and treatment services provided within a regulated residential care home.." should be VAT exempt.
However, in a few cases, because of a business loophole, elderly residents, many of whom are suffering from dementia, are being charged VAT. For some, who still have assets above the threshold of £23250 (having been forced to sell their homes) this loophole means that, not only are they being charged income tax on their small pensions, but they are also being charged VAT on the residential care services they are purchasing. My gran pays over £120 a week in VAT alone.
HMRC and Government officials and ministers say that there is no law being broken. How quick they are to shout "foul" when large companies find loopholes to avoid paying tax, and yet our Government is "unable" to stop this immoral and unfair VAT charge.
The unfairness is exacerbated by the fact that when placed in care by Local Authority as their assets are below threshold their care is not subject to VAT as the authority is exempt. Private individuals do not have this ability.
Dementia is a mental illness - it is not recognized as such, and does not entitle the sufferer to continuing care funding.
This VAT charge, although it only affects a small minority of dementia care residents, is immoral. It also means that elderly people will reach their asset threshold sooner, and then become completely reliant on state funding (once assets fall below £23k) surely an example of the Government shooting itself in the foot as individual assets will be depleted much more quickly?
Please sign the petition and share with your friends - I guarantee you if you don't have someone in your family affected by dementia you will know someone who does.
http://epetitions.di...petitions/47719