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.
source tfn 22.05.20