All of these household safety items have VAT on them – surely this is wrong?
4,000 people are hospitalised each year from carbon monoxide poisoning
(Source: Department of Health)
Gas fires are the biggest risk and a third checked by the safety authority were deemed unsafe
(Source: Gas Safe Register)
Low income households are most at risk from carbon monoxide poisoning as they cannot afford to service, repair or replace gas appliances
(Source: National Energy Action)
There are 2,469 electrical fire incidents reported each year
(Source: Electrical Safety First)
Approximately 1.5 million households in England do not have a smoke alarm
(Source: Department for Communities and Local Government)
The Campaign
Residential safety products and services are currently taxed at 20% VAT. This includes smoke alarms, annual gas safety checks, fire assessments and carbon monoxide detectors.
There is a strong ethical argument for removing VAT charged on products and services whose sole purpose is to save lives.
Annual MOT inspections, which are also intended to save lives, are zero-rated as well as safety products in newly constructed homes.
In stark contrast, when a landlord, tenant or homeowner of an existing property purchases these products the price is inflated by a 20% VAT charge.
There are almost 10 million rented homes in the UK. This includes 4.3million social rented and 5 million private rented. Housing associations and landlords have a legal requirement to ensure that these homes are safe. The VAT currently generated from safety products charged at 20% is in excess of £200million each year.
The Problem
Every year in the UK hundreds of people die and many thousands are seriously injured in their own homes due to fire, carbon monoxide poisoning, gas explosions and electrocution.
Official records show that a high proportion of these casualties are caused by, or are substantially the result of, faulty or missing residential safety products.
It has been claimed that official statistics may in fact understate the level of risk. It is well established that adoption of such products, including, for example, smoke detectors, CO detectors and fire extinguishers, has made a significant impact in reducing domestic deaths and injuries.
However, the fact is that a large number of households still have none of these products installed or have old, broken and unreliable products in their homes, much of this due to the cost. This is literally a matter of life and death.
The Solution
Removing VAT on residential safety products and services will make safety more affordable and the millions saved can be re-invested into more safety products and services for tenants to reduce the number of incidents in the UK.
The Safety Tax campaign, led by British safety software company Gas Tag, supported by housing associations and MPs, is urging Government to vote to remove VAT on all residential safety products and services, which will:
- Make residential safety products more affordable to save more lives;
- Save millions of pounds each year, which could be re-invested by social landlords and Councils to make homes even safer.
Supporters
Safety is rightly at the top of the political agenda. It is ridiculous that tax is charged on safety products and services. Removing the VAT will make them more affordable and save more lives. It’s the right thing to do.
It is a total disgrace that safety products are taxed as if they are luxury items. VAT must be reduced so that everyone can afford to buy them and be safe in their homes. It’s a no-brainer.
I support the campaign to cut VAT on safety products. These are potentially life-saving products and they should be affordable.
The VAT raised annually on safety products and inspections across the social housing sector is in excess of £200million. As landlords, we not only have a legal obligation to keep people safe but also a moral one. The fact that safety is taxed at the maximum rate is unjustifiable. We’re backing the Safety Tax campaign and we’re asking other housing associations and Councils to give their backing and support it too.
