Rachel Power, Chief Executive of the Patients Association, said: “Government must step in to resolve the threat to learning disability care organisations caused by HMRC’s demands for back pay.
“This issue has arisen because charities and other providers followed government guidance, which tribunals have now found to be incorrect. Charities cannot be left to pick up the tab – we know that the result will be cancelled contracts and the collapse of many providers. With social care already in crisis, the Government must not stand by and watch an entire sector of it collapse.
“Care workers provide a hugely valuable service, and it’s positive that they will be remunerated more fully for their work. It’s deeply unfortunate that this has come about in so chaotic a way.
“HMRC’s swift targeting of charity providers is also concerning – the small business sector is awash with stories of the tax authority picking smaller, easier targets, and it seems to have transferred this approach to the charity sector.
“Ministers must now act decisively, and not allow Brexit or other considerations to distract them – it has long been known that this will be a highly stretching period for British government, and ministers must rise to the occasion.”
Notes to editors
The issue of charities being faced with demands for back pay is covered by The Times in this article: https://www.thetimes.co.uk/article/27945cce-6bfb-11e7-91b4-8977b98727e9.