VAT Relief on Scrub Caps for NHS Charitable Funds and Charities

VAT relief on scrub caps: who qualifies

Some orders can be supplied at 0% VAT under HMRC's relief for charity-funded medical equipment (VAT Notice 701/6). It isn't a blanket NHS exemption. Whether an order qualifies depends on who is buying, whose money pays for the caps, and what they'll be used for.

Who can buy scrub caps VAT-free

• NHS trusts and other eligible health bodies paying from charitable funds. That means the trust's charitable funds, donations or other donated money. Caps paid for from a trust's normal NHS budget are charged VAT as usual, because HMRC does not treat NHS funds as charitable or donated.
• Charities buying for eligible medical use. For charities, it comes down to what the caps will be used for. Typically that's a hospital's charitable arm, such as an NHS charity or league of friends, buying caps for use in that hospital's theatres and clinical areas. A charity can also buy caps to donate to an eligible health body such as an NHS trust.

Who doesn't qualify

• Clinicians and staff buying their own caps
• NHS orders paid from NHS budgets
• Private hospitals and clinics run for profit
• Charities buying caps for a use that isn't medical
• Organisations outside healthcare

Why scrub caps can qualify

HMRC's notice allows protective clothing only where it is designed specifically for medical or surgical use, like masks, gowns and gloves. Our scrub caps are designed specifically for surgical and clinical use, so they fall within that group, and eligible orders can be supplied at 0%.

What we need from you

1. An eligibility declaration, separate from your order. HMRC publishes model wording in the Notice 701/6 certificates: Certificate A where an eligible body such as an NHS trust buys with charitable funds, and Certificate G where a charity buys caps to donate.
2. Confirmation of the funding: the caps are paid for from charitable or donated funds.
3. A purchase order or written order with your organisation's details.

We need the declaration before we supply the caps, and we keep it on file as HMRC requires. Contact us before you order and we'll invoice the eligible caps at 0%.

What it's worth

Our prices include 20% VAT, so relief takes 16.6% off the price you'd otherwise pay. A £11.95 cap comes to £9.96.

This is a summary of HMRC guidance, not tax advice. Your finance or charity team should confirm eligibility before ordering, and VAT Notice 701/6 has the full rules.