TWO veteran Army doctors from Bridgwater have taken a campaign for fairness in the tax system affecting people with dementia directly to the Treasury.
Dr Michael Staunton and his wife Dr Avril Staunton were in London to hand-deliver an open letter calling on Chancellor Rachel Reeves to end a VAT rule that adds 20% to dementia care costs faced by families.
Avril was diagnosed with posterior cortical atrophy (PCA), a rare form of dementia, at age 60.
The couple were joined at The Treasury by Libby Price and Dr Liz Dennis from non-profit The Filo Project that offers dementia care, alongside Somerset MP Rachel Gilmour (Lib Dem, Tiverton & Minehead).
Tax issues arise from the fact dementia care is not routinely provided for free on the NHS, leaving families to cover all or part of the cost themselves. And a tax anomaly means The Filo Project must charge families an extra 20% in VAT because they are a Community Interest Company.
If they offered the same service as a state-regulated institution or charity the service would be tax-exempt.
For Filo clients who attend twice a week and pay for all their care, the issue means families pay more than £3,000 a year (£3,120) extra in VAT. Since The Filo Project was set up in 2014, families have paid an extra £500,000 in VAT for their day care.
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Avril, who was a notable gynaecologist and authored several books, now attends two Filo Project groups for her dementia day care.
Her husband Michael said: “If Avril had a different permanent disability, we wouldn’t have to pay VAT on her care or it would be paid for by the state.
“The Filo Project is a life saver to me and many other family carers. It’s not a matter of convenience, it’s a lifeline in giving families respite. Especially when I am exhausted and Avril’s needs have escalated.
“And looking at the bigger picture, day care like The Filo Project saves money for Local Authorities as families are less likely to reach crisis point and need expensive residential care.
“It’s unfair that a tax anomaly means they have to charge families extra just because they’re a CiC.
“That’s why we made the trip to Westminster to hand-deliver our open letter to Rachel Reeves. We’re calling for this unfair dementia tax to be removed as soon as possible.”

Drs Michael and Avril Staunton at The Treasury with Dr Liz Dennis and Libby Price from The Filo Project and MP Rachel Gilmour. Picture: Steve Reeves
The open letter has been signed by 150 supporters, many of whom have family members with dementia or who work in social care.
And MP Mrs Gilmour is also backing their call for changes to the tax system.
“I have seen first-hand the high-quality care delivered by The Filo Project for people with dementia in Mid Devon,” she said.
“Dementia is a very important issue for me, and it is groups like The Filo Project who are providing the important connection, community and care for those with dementia, as well as much-needed respite for their loved ones.
“The Filo Project operates as a CIC and service users are required to pay 20% VAT for each session if their care service isn’t commissioned by a local authority. This in effect creates a two tier system.
“I am proud to support the Filo Project’s campaign to remove VAT on CICs that provide crucial dementia care services. Only by removing this VAT will we see the expansion of community-focused service providers like Filo – benefiting people in Tiverton and Minehead and across the UK.”
Libby Price, co-founder and director of The Filo Project, added: “The Government waives VAT for caviar, yet essential dementia care provided by a social enterprise like ours is considered a taxable luxury service. For many families it means choosing between their loved one receiving care, and eating or heating.
“Removing this VAT wouldn’t cost the Treasury much but would mean the world to families facing dementia.”
Campaigners, including the Stauntons, are urging the Chancellor to make this simple change to the VAT rules at the Budget later this month.
For more information on The Filo Project and the campaign, visit www.thefiloproject.co.uk/campaign, or call 0333 939 8225.
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Michael and Avril Staunton in Westminster with their open letter to Chancellor, Rachel Reeves. Picture: Steve Reeves



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