NHS charities are set to benefit from hundreds of thousands of pounds for PPE donations made earlier this year
VAT collected on donated personal protective equipment (PPE) will be given to charities supporting the NHS and care workers.
The Care Workers Charity and NHS Charities Together will benefit from the government donation, which is expected to be worth hundreds of thousands of pounds.
The government introduced a temporary zero rate of VAT on PPE on 1 May to reduce costs for care homes and businesses buying the essential equipment during the Covid-19 emergency.
The amount to be donated to charity will reflect the VAT collected on donations made from 1 March until 30 April - the period between PPE donations starting and when the zero VAT rate became effective.
Chief Secretary to the Treasury Steve Barclay said: “Frontline health workers are fighting coronavirus day in, day out – in our hospitals, care homes and communities. Whilst we will never be able to fully express our gratitude to them, we want these donations to be a small sign of our appreciation.
“From the Treasury and the whole government, we say thank you for all you are doing.”