If you are struggling with a disability or you are aged more than the figure 60, the chances are that you might be paying too much in the form of VAT. VAT relief for the disabled is something that you must be aware of in this case. This guide is based on the frequently asked questions about what is VAT relief and how it works for people who are disabled or aged more than 60 in the UK. Let us get further delved into the discussion to gather facts about the criteria that can make you eligible to get the benefits of VAT relief in the UK.
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What is Value Added Tax?
VAT stands for Value Added Tax. It is a tax that is added to most goods and services sold in the UK. The current standard rate of VAT in the UK is 20%, which means that if you buy something for £100, you will pay an additional £20 in VAT.
Some goods and services are exempt from VAT, such as certain types of food and medical supplies, while others are subject to a reduced rate of VAT, such as domestic energy. VAT is collected by businesses on behalf of HMRC, and the money is used to fund public services.
What is the Definition of Disability for VAT Reliefs?
The definition of disability for VAT relief in the UK is based on the Equality Act 2010. According to this act, a person is considered disabled if they have a physical or mental impairment that has a substantial and long-term adverse effect on their ability to carry out normal day-to-day activities.
The impairment must have lasted, or be likely to last, for at least 12 months. This definition is used to determine whether a person is eligible for VAT relief on certain goods and services that are designed to help with their condition. In general, the goods or services must be specifically designed for disabled people and must be used for their own personal or domestic use.
What Does Personal or Domestic Use Mean?
Personal or domestic use means that the goods or services are used by the disabled person for their own personal needs, or for the needs of someone who lives with them and is dependent on them. This can include things like mobility aids, adapted vehicles, and building alterations that are designed to help the disabled person carry out normal day-to-day activities.
However, goods and services that are used for business purposes or for resale are not eligible for VAT relief. In general, the goods or services must be used by the disabled person or someone who lives with them and is dependent on them and must not be used for any other purpose.
What is Covered by the Zero Rates?
The zero rates of VAT apply to certain goods and services that are considered to be essential or beneficial to society. This includes things like most food items, books and newspapers, children’s clothing and footwear, public transport, and some medical goods and services.
The zero rates also apply to certain goods and services that are specifically designed to help disabled people, such as mobility aids, adapted vehicles, and building alterations. In order to qualify for the zero rates of VAT, the goods or services must meet certain criteria, and the supplier must be able to provide evidence that they are eligible for the zero rates.
Can Other Goods and Appliances Qualify for a Zero Rating?
Most goods and appliances are subject to the standard rate of VAT in the UK, which is currently 20%. However, there are some exceptions, and certain goods and appliances can qualify for a reduced rate of VAT or a zero rate of VAT. For example, some energy-saving products, such as solar panels and wind turbines, are eligible for a reduced rate of VAT.
In addition, certain goods and services that are specifically designed to help disabled people, such as mobility aids, adapted vehicles, and building alterations, are eligible for the zero rate of VAT. However, it’s important to note that not all goods and services that are designed for disabled people are eligible for zero rates, and the supplier must be able to provide evidence that the goods or services meet the criteria for zero rating.
What if I am Aged Over 60, But Not Disabled?
If you are aged over 60 and not disabled, you will generally have to pay the standard rate of VAT on most goods and services in the UK. However, there are some exceptions. For example, some energy-saving products, such as solar panels and wind turbines, are eligible for a reduced rate of VAT.
Moreover, there are goods and services that are specifically designed to help elderly people, such as stairlifts and bathroom adaptations, and may also be eligible for zero rates of VAT.
How Do I Claim the Elderly and Disabled VAT Reliefs?
To claim VAT relief as an elderly or disabled person, you will need to meet certain criteria and provide evidence to the supplier that you are eligible for the relief. You may need to fill in a form or provide a letter from a doctor or other medical professional. The supplier will then be able to apply the zero rate of VAT to the eligible goods or services.
The Bottom Line
Now that you have gathered a fair amount of information regarding how to handle VAT relief for the disabled in the UK, we can bring the discussion towards wrapping up. The benefits of the elderly and disabled VAT relief in the UK are often appreciated and people tend to get inclined towards these befits.
This happens after a certain age or when you’re suffering from a serious disability which is hindering your day-to-day tasks. However, the criteria to meet the standard for qualifying is a must to avail of the benefits for your specific case and needs. We hope these few minutes of reading will help you develop a better understanding of VAT relief for the disabled and how it works in the UK for your benefit.
Get in touch with our young, clever, and tech-driven professionals if you want to choose the solution to tax burden or accounting problems in the UK for your income. We will ensure to offer the best services.
Disclaimer: The information about the VAT relief for the disabled provided in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.