.png)
.png)
VAT collected on donated personal protective equipment (PPE) will be given to charities supporting the NHS and care workers, the Treasury has announced.
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-19 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.
Businesses will have until the end of June to tell HMRC the VAT they have paid, giving them time to complete their usual accounts and identify these costs.
The donation, which HMRC estimates will be between £500,000 to £1m, will be split equally between the Care Workers Charity and NHS Charities Together.
