USEFUL ADVICE
VAT relief on products and services
for disabled people
VAT is a tax that you pay when you buy goods and services in the UK. The standard rate for VAT is 17.5%. Disabled people don’t have to pay VAT when they buy equipment that has been designed for disabled people, or when they have equipment adapted so they can use it.
Also, VAT is not charged on certain services provided to disabled people, including building work to adapt a disabled person’s home and the hire of disability equipment like wheelchairs.
To qualify for zero-rate VAT, a person has to be “chronically sick or disabled”. A person with a temporary injury, like a broken leg, wouldn’t qualify, nor would a frail older person who was generally able-bodied.
Some examples of products that are zero-rated for VAT are: wheelchairs, some medical and surgical appliances (e.g. artificial limbs), adjustable beds, stair lifts, gadgets that make everyday tasks easier (e.g. kettle tippers), computer software or hardware designed specifically for disabled people.
Services that are eligible for zero-rating include: the servicing, maintenance and installation of disability equipment, adaptation work on a disabled person’s home, the hire of disability equipment.
Before you pay for a disability-related product or service, ask if it qualifies for VAT relief. You may be asked to sign a form declaring that you have a chronic illness or disability . The supplier should have copies of this form. You can then buy the product or service at a price that excludes VAT. You don’t have to pay VAT and then reclaim it from the government. It will be taken off the purchase price before you pay.
The rules about VAT relief for disabled people can be complex. You can find out more about VAT reliefs for disabled people on the
HM Revenue & Customs website at: www.hmrc.gov.uk
If you can’t find the answer to your questions there, you can call their National Advice Service on:
Tel: 0845 010 9000
Text: 0845 000 2000
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Article from Livewire 16 (January 2008):
Direct Payments
Creating choice for disabled people
What are Direct Payments?
Direct payments are local council payments for people who have been assessed as needing help from social services, and who would like to arrange and pay for their own care and support services instead of receiving them directly from the local council. Direct payments are not a replacement of income and therefore do not affect any other benefits you may
be receiving.
If you already receive social services:
Your local council is obliged to offer you the option of direct payments in place of the services you currently receive. There are some limited circumstances where you are not given this choice and your council will be able to tell you about these.
If you’re not receiving social services:
To get direct payments you'll need to contact your local council to ask them to assess your needs. Social services— and therefore direct payments—- are normally available if you are:
disabled (16 or over)
a carer (16 or over) including people with parental responsibility for a disabled child
an older person.
If you've been refused social services:
If your local council has decided that you do not need social care services, it will not offer you direct payments.
If you think your needs or circumstances have now changed, ask your local council for a new assessment.
What can I use direct payments for?
The money is for you to use to pay for the services and/or equipment which will meet the needs the local council has assessed you as having.
What can I not use direct payments for?
You can’t use them to pay for permanent residential accommodation. But you may be able to use direct payments to secure occasional short breaks in residential accommodation.
You can’t use direct payments to pay your spouse (or civil partner), close relative or anyone who lives in the same household as you (except in exceptional circumstances), unless that person is someone who you’ve specifically recruited to be a live-in employee.
How it’s paid
Direct payments are made directly into your bank, building society, Post Office or National Savings account.
If you need someone who cares for you to collect your money, or you are registered blind, payment can be made by sending a cheque which can be cashed at the Post Office. The amount you receive will depend on the assessment your local council makes of your needs.
How does the scheme work?
The Direct Payment Advisory Scheme in Somerset is provided for the County Council by A4e, who have a team of direct payment and independent living fund advisors, to take the weight of employing carers off your shoulders.
Before receiving direct payments, you’ll be asked meet with a direct payment advisor from A4e who will explain how the scheme works. He or she can help you to open a bank account and choose and employ your staff.
You'll need to account for the money you spend so A4e will tell you what records you need to keep and what information you'll be expected to provide: such as time-sheets signed by personal assistants, or receipts for services from agencies. Your A4e advisor will be able to help you manage the paper work for a short time to help you become confident with this.
A4e’s payroll bureau
A4e may be able to help you find someone else who can help you manage your scheme. Or you may prefer to ask A4e to look after your payroll for you. They will ensure that your carers are paid accurately and on time. A4e can administer PAYE, national insurance and provide computerised payslips for your staff, as well as liaising directly with HM Revenue & Customs on your behalf.
Contact A4e’s payroll administrator for a free quotation to administer your payroll whether it is weekly, fortnightly, four weekly or monthly.
Tel: 01823 339494
Fax: 01823 339492
More information
You have the choice to find out more information about direct payments in two booklets. One of them is an easy read version. They can be downloaded from the Department of Health website www.dh.gov.uk or ordered over the telephone. 'A guide to receiving direct payments from your local council' is the name of the standard booklet.
The easy read booklet is called 'An easy route direct payments'. If you order the easy read booklet over the telephone, you can ask for a pack which includes a book, a CD-ROM and an audio tape.
To order a free copy of either publication, call the Department of Health publications orderline.
Telephone: 08701 555 455
Textphone: 08700 102 870
Lines are open from 8am to 6pm Mon to Fri.
If you would like to know more about direct Payment in Somerset or to be assessed to find out if you qualify for the scheme, talk to your social care worker, if you have one,
or contact Somerset Direct on 0845 345 9133.
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Article from Livewire 16 (January 2008):
Work Capability Assessment a change to disability benefits
The government has announced a new medical test that will assess a disabled person’s capability to work. The Work Capability Assessment will be introduced in October 2008 for new benefit applicants. It will replace the current Personal Capability Assessment. A new Employment and Support Allowance will replace Incapacity Benefits.
The government says that the Work Capability Assessment will assess what an individual can do, rather than what they can’t do. For example, you will no longer score points simply because you can’t walk more than 400 metres. Instead the new test will look at things like a person’s ability to use a computer keyboard or a mouse because this type of task is likely to be needed in the workplace.
Works and Pensions Secretary, Peter Hain, has said that the new assessment “will offer advice on the type of help and support a person may need so that they can find sustainable work. Those who still qualify for the Employment and Support Allowance, following the new assessment, will benefit from more help and more support than ever before”.
It is estimated that 50% of people taking the new assessment won’t pass it, and disability groups have expressed concern at these benefit changes.
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Article from Livewire 16 (January 2008):
Say no to doorstep traders
Over the past year, local newspapers have reported cases of householders being duped by rogue tradesmen turning up at the door:
· A 70 year old Minehead woman agreed to pay £750 to have carpets fitted but the men dumped a roll of carpet on her doorstep and disappeared with her money.
· A 74 year old Bridgwater man agreed to pay £650 to have some repair work done to his house but when the work was finished, the trader tried to charge him £2,500.
· A partially-sighted householder allowed a doorstep tradesman to repair her chimneystack which he claimed was in a dangerous state. He charged her £3,500. It later turned out that no work had been done.
Rogue traders mainly target pensioners (who may have a sensory or memory disability) because they may not be able to give an accurate description if police are called to investigate. Trading Standards reports that the average age of victims of doorstep scams is 80.
Never let an uninvited tradesman into your home and don’t have work done by someone coming uninvited to your door. Reputable traders do not have to knock on doors to find work. Bogus doorstep traders won’t provide a written quote and will generally insist on starting work the same day they knock at your door. They are not your friends. It’s your doorstep and you can ask them to leave.
If you want to buy something, take time to think, shop around and get quotes. Ask friends or relatives to recommend reputable local traders. You may like to display the notice on the back page of this issue of Livewire at your front door.
