Saw this over on PH and thought some here might be interested.
The long and short of it is that the Air Ambulance service currently pay VAT on their fuel. A York MP has started (or at least gotten involved with) campaign to change this, or get it refunded bringing the service into line with life boats.
Here's an article on it:
http://www.yorkpress.co.uk/news/9524380.MP_in_VAT_plea_for_Yorkshire_Air_Ambulance/
And an e-petition:
http://epetitions.direct.gov.uk/petitions/29349
And a list of which MPs have signed the EDM:
http://www.edms.org.uk/2010-12/2709.htm
THE Government should repay air ambulances for the VAT they are charged on the fuel they use for their lifesaving work, a York MP has said.Hugh Bayley, who represents York Central, has tabled a House of Commons motion – backed by MPs from all parties – saying organisations which operate rescue helicopters in emergencies should be treated in the same way as the lifeboat service.
He wants grants to be made to the Yorkshire Air Ambulance (YAA), which used about 170,000 litres of fuel last year and was charged £5,800 in VAT by the Treasury, and other similar bodies which would see them being reimbursed.
Edit: apparently the figures in the above quote are wrong... fromt he comments:
Just so you know I am closely linked with this story and your right this figure is wrong, I would love the vat man to use the same make of calculator. A recent annual report states that they are spending £10,000 per month on fuel the VAT on that would be 10,000 Divided by 120 multiply by 20 = £1666 VAT per month or £20,000 per year or there abouts.

