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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13917
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My wife and myself,88yrs and 93 yrs respectively,have been

Customer Question

My wife and myself,88yrs and 93 yrs respectively,have been granted Care Assistance Allowance.so that we can employ someone to do the housework that we can no longer do ourselves.
i have engaged a person through an Agency and I am very pleased with the result,but the Agency now want to charge VAT on top of the agreed hourly rate. Are they correct in this as I seem to remember reading that Vat was not chargeable under these circumstances. Am I right ?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Thanks question, I am Sam and I am one of the UK tax experts here on Just Answer.
You are correct that VAT is NOT normally charged on the payment of home care services.
However if the care/assistance provided is NOT regulated by the Care Quality Commission then VAT is charged, and I would advise that you consider seeking alternative assistance.
I have added a link here of those covered by the Care Quality commission
http://www.cqc.org.uk/search/services/services-in-your-home?f[0]=im_field_services_in_your_home%3A3675
Or to talk to them advise and recommended services in your area telephone You can contact us at our England based National Customer Service Centre:
Telephone: 03000 616161
As you certainly do not want the little funding you receive to be eaten up with VAY charges
Thanks
Sam