VAT Relief for Disabled Guide
Value Added Tax (VAT) is tax on items every time ‘value’ is ‘added’. Businesses must charge VAT for goods and services sold in the UK and give it to HMRC.
In special circumstances to help cover the cost HMRC allows VAT relief on some products and services by allowing either a zero or reduced rate.
Under VAT law VAT relief is available to individuals who are classed (by VAT law) as being disabled or chronically ill.
VAT relief for disabled people is potentially available on a number of different items including cars, household upgrades and equipment.
Not all items provided to individuals with disabilities are exempt from VAT with both the item itself and the individual’s disability needing to meet the qualifying criteria in order for the exemption to apply.
Who qualifies for disabled VAT relief?
To qualify you don’t need to be registered as disabled but you do need to satisfy specific criteria relating to your disability and the use of the item being purchased.
VAT exemptions for individuals with disabilities are not based on financial circumstances or contingent on the benefits received (or not received) by a person with a disability.
The key qualifying criteria for VAT exemption if you are disabled includes:
- Individuals who experience a physical or mental disability that significantly hampers their ability to perform daily tasks.
- Those with medical conditions recognised by the medical community as chronic illnesses. HMRC uses diabetes as an example.
- Or those who are diagnosed as terminally ill.
Domestic of personal use:
The term ‘domestic or personal use’ is used by HMRC and refers to the requirement for a supply that is intended specifically for an individual with a disability.
This means that the items and services you purchase must be intended for personal or domestic use only and excludes any use for business purposes.
HMRC reserve the right to question any claims made regarding the purchase of goods or services for personal or domestic use.
You can find more information and guidance on qualifying VAT relief criteria in (VAT Notice 701/7)
How do I claim VAT relief as a disabled person?
If disabled VAT relief is applicable the supplier will not charge you VAT on the item or service being purchased.
A zero rate of VAT is given to the purchase which means not VAT is charged and you don’t need to make a claim to get the relief.
The supplier or manufacturer of the goods or services makes the decision on whether your purchase meets the zero VAT rate conditions.
A supplier is duty bound to check a disabled persons zero rate eligibility as per the VAT regulations and usually requires a written declaration stating that you are entitled.
Zero rate VAT exemption for disabled people
The disabled zero rate VAT relief scheme is pretty comprehensive in what it covers but not all products and services intended for individuals with disabilities are exempt from VAT.
We list below some of the most common zero rated products services:
- Adapted motor vehicles
- Mobility scooters
- Wheelchairs
- Building works for example lifts, ramps, bathrooms, washrooms and lavatories
- Installation of goods
- Adaptation of goods
- Low vision aids
- Medical and surgical appliances
- Specialist adjustable beds and chair lifts, hoists and sanitary devices
- Specialist computer devices
- Emergency alarm call systems
If you are unsure you can ask the supplier for clarification if zero rate VAT relief is available and use the VAT relief guidance on .GOV.
VAT relief for people over 60
Reduced rate VAT is usually set at 5% and refers to a reduction in the value added tax applied to goods and services that are considered essential.
A reduced rate can be applied to certain mobility aids installed in the homes of people who are not disabled, aged 60 or over and have a qualifying mobility aid supplied and installed.
Goods eligible for the reduced rate of VAT include:
Grab rails, ramps, stair lifts, bath lifts, built-in shower seats or showers with built in seats, and walk in baths featuring sealable doors.
To be allowable the qualifying reduced rate item must be sold and installed by the same supplier.
The supplier of a reduced rate item will normally need a written declaration from the purchaser confirming their eligibility.
Contact HMRC about VAT reliefs for disabled and older people
HMRC can be contacted by phone and in writing if you need support with VAT relief as a disabled, chronically ill or older person.
You can call HMRC for information about VAT reliefs available for disabled and older people on:
0300 123 1073 from Monday to Friday during the hours of 8.30am to 5.30pm.
