BBC Panorama investigation puts welcome spotlight on care sector

22 Mar, 2017

A recent BBC Panorama investigation has revealed that firms in the care sector have cancelled contracts with 95 UK councils, citing an inability to provide sufficient care for the amount they are paid.

Following the documentary, Crowe’s Head of VAT, Robert Warne shared his views on the care industry and discussed how the VAT team have been advising providers during the “perfect storm”.

Robert Warne said: “We welcome the spotlight being turned on the care industry in the recent BBC Panorama investigation. These are tough times for the care sector – escalating costs, squeezed margins and increased need have all created the perfect storm. The recent news that so many providers are not able to deliver services on the funding offered by local authorities requires a real rethink about the funding of social care.

“Often one of the additional costs care providers incur is irrecoverable VAT. We have been aware of this issue for quite some time and have been advising a number of providers to alter their VAT positions which would put them on a similar footing to when the service is provided directly by a local authority.”

Find out more about the BBC Panorama investigation.

Please contact a member of the VAT team at Crowe Clark Whitehill if we can be of help.

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