Saw this [url= http://pistonheads.com/gassing/topic.asp?h=0&f=23&t=1110924&mid=235096&i=0&nmt=VAT+on+fuel+for+Air+Ambulances&mid=235096 ]over on PH[/url] 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.
Charities pay VAT. It's something successive governments have refused to change. I work for a charity and recently discovered that if we send money to a project abroad, we're expected to pay some VAT to UK Revenue & Customs on goods bought with it.
What about road ambulances?
Drac - Moderator
What about road ambulances?
I don't know about that to be honest. I just thought that given the charity funded status of the air amb. service, it was a bit of a bummer that VAT is being charged on the fuel to the detriment of the service.
What about road ambulances?
I was told that we reclaim VAT on fuel. I'm not 100% certain though.
I don't think we can as we don't sell anything but again I can't recall correctly.
If we do pay VAT like I believe then it'll be far more than £20k per annum, roughly my station alone for 1 vehicle is £4,500 per month on fuel.
Nhs will pay vat on road fuel too, and can not recover as input vat like businesses can. The same applies to medicines (and other supplies). Oddly private hospitals can recover the vat so can actually be a cheaper place to treat expensive conditions.
But presumably they reclaim the VAT on the helicopter purchase?
Signed anyway, let the Grown-Ups sort it out... 🙄
Oddly private hospitals can recover the vat so can actually be a cheaper place to treat expensive conditions.
Doesn't this count as unfair competition when you are competing with the NHS, something that becomes more important, if/when the government forces through their bill.
Personally I think its very poor that these critical resources (H.E.M.S. teams) are charities and not state funded.
Mrmo, Yes, I can point you to some hospital pharmacists who are already peed off. The dept of health and the treasury says it doesn't matter because it all gets recycled into the govt funds.
Qwerty, contravertially I am not convinced they are always needed. Nhs trusts could fund their own helo, if it was value for money for patient care. AFAIK, only one does - that suggests to me that whilst they are very good if you need one, they are probably a giant waste of money.
whilst they are very good if you need one, they are probably a giant waste of money.
Your getting patient care and finances all muddled.