PPE, e.g. face masks, gloves and so on, is currently enjoying VAT-free status as part of a six-month measure to cut the cost of frontline businesses like care homes. Unfortunately, despite the apparent second wave of infections leading to increasingly restrictive lockdown measures across the country, the Chancellor has (so far) refused to bow to pressure to extend the VAT holiday. This means that from 1 November, PPE will be subject to VAT at the standard rate of 20%. This will come as a blow to both non-VAT registered businesses in retail and hospitality needing to equip their staff, as well as individuals buying face masks.
If possible, it may make sense to buy some extra PPE ahead of the change if you’re low on stock. Consider using reusable face masks etc. rather than disposables too.
If your business is in the health or social care sector, you should source your PPE via the online government portal here.