Specialist Accountant for Care Homes, Supported Living & Home Care Providers
A specialist accountant for care homes and home care providers keeps you compliant while you manage rotas, residents and the regulator. One minimum wage slip or late VAT return can trigger HMRC penalties. Tax Care is a cloud-based firm for UK care providers: fixed monthly fees, a dedicated accountant, and real expertise in sleep-ins, partial exemption and CQC registration.
Tax & Accounting Challenges for UK Care Providers
- Wage costs rising faster than fee rates, National Living Wage at £12.71 an hour and employer National Insurance at 15% above £5,000
- VAT on agency staff, food, energy and maintenance that cannot be reclaimed because care income is exempt
- Evidencing cost per bed or per care hour when negotiating fee uplifts with councils and ICBs
- Meeting CQC expectations on financial viability at registration and beyond
What You get with Tax Care Accountant
Accountants for Every Care Service
Our service is built for UK care providers operating as sole traders, partnerships, limited companies, CICs and groups. We work with:
Residential care homes and nursing homes
Dementia, EMI and specialist nursing units
Supported living and extra-care housing providers
Domiciliary care agencies and live-in care providers
Children's homes and supported accommodation registered with Ofsted
Day care and day opportunity services
Complex care, learning disability and mental health support services
Community Interest Companies and charitable care providers
New providers preparing a CQC registration application
Whether you are commissioned by a local authority, funded through an ICB, paid by direct payment or entirely private, Tax Care has a solution tailored to your structure, income mix and tax obligations.
Why Care Providers Need a Specialist Accountant
Care finances are more complex than they look. Between exempt income, irrecoverable VAT, rota-based payroll, agency spend and regulated reporting, the numbers move quickly — and the rules change every Budget.
A general accountant can easily miss the issues that decide whether a care service is viable. A specialist understands how welfare services are treated for VAT, where minimum wage compliance actually breaks down, and how to present your costs when a commissioner asks for evidence.
Typical tax and accounting challenges for care providers include:
- Applying the welfare services VAT exemption correctly, and identifying the standard-rated income sitting alongside it
- Managing partial exemption where the service has both exempt and taxable income
- Running compliant payroll for bank, rota and zero-hours staff, including holiday pay for irregular hours
- Claiming Employment Allowance correctly where connected companies must share a single claim
- Maximising capital allowances on conversions, extensions, fit-outs and fixtures within a care home
- Producing cost-of-care evidence that stands up in a local authority fee negotiation
Tax Care Accountants is regulated and supervised by the Institute of Financial Accountants (IFA), a QuickBooks Approved Platinum Partner and a Xero Certified Advisor. We give care providers real-time visibility of their finances — on any device, at any time.
Care Sector Accounting Services
Our package is a complete, all-inclusive service designed to save you time, reduce your tax bill and keep you fully compliant with HMRC — from day-to-day bookkeeping through to year-end accounts and regulatory reporting.
Bookkeeping and Record Keeping for Care Providers
- Cloud bookkeeping configured for care: employed pay split from agency spend, food, utilities, CQC fees, training and DBS, PPE and maintenance
- Automatic bank reconciliation, every transaction matched to receipts and invoices
- Reporting by home, branch or service, so you can see which sites earn their keep
- Making Tax Digital (MTD) compliant records via QuickBooks or Xero
VAT for Care Homes and Home Care Agencies
- A written position on whether your income is exempt, taxable or mixed — welfare services from a state-regulated provider are exempt under VAT Notice 701/2
- Identification of standard-rated income such as room hire, concessions, meals sold to visitors and intercompany management charges
- Partial exemption calculations and method reviews where both income streams exist
- Review of inherited group or staffing arrangements against current HMRC guidance
Payroll for Care Staff
- Weekly, fortnightly or monthly payroll and Real Time Information (RTI) submissions for carers, nurses, bank and office staff
- Holiday pay for irregular hours workers, plus auto-enrolment pension compliance
- Minimum wage health checks covering sleep-ins, travel time between visits, training hours and deductions
- Employment Allowance claims, including the connected companies rules that apply to care groups
Capital Allowances, Property & Group Structure
- Capital allowances reviews on purchases, conversions, extensions and fit-outs — fixtures within a care home are consistently under-claimed
- Structures and Buildings Allowance on qualifying construction and conversion work
- Property company and operating company structures, directors’ loan accounts and profit extraction
Year-End Accounts and Tax Returns
- Statutory accounts for sole traders, partnerships, limited companies, CICs and groups
- Corporation Tax computations and submission to HMRC, with reliefs fully applied
- CIC34 community interest reports and charity accounts where they apply
- Self-Assessment returns for directors, partners and self-employed providers
CQC, Funder & Commissioner Reporting
- Financial viability statements to support a CQC registration application
- Cash flow forecasts and business plans for registration, refinancing or tender submissions
- Cost-of-care returns and evidence packs for local authority and ICB fee negotiations
- Management accounts showing occupancy, hours delivered, agency spend and cost per bed or per care hour
Fixed-Fee Accounting Packages For Care Homes
Taxcare charges a fixed monthly fee. No hourly rates, no charges every time you send an email, no invoice at year-end that catches you off guard. Your accounting cost is agreed upfront, the same every month, easy to budget.
The right package depends on your business structure, transaction volumes and how much support you need. If you’re not sure which tier fits, the free consultation will tell you.
Sole Trader
- Cloud bookkeeping connected to your bank account
- Self-assessment tax return prepared and filed with HMRC
- Allowable expenses reviewed so you're not paying more tax than you need to
- VAT returns if you're VAT-registered
- Unlimited accountant support — call or message when you need to
Limited Company
- Statutory year-end accounts prepared and filed at Companies House
- Corporation tax computation and CT600 submission to HMRC
- Director payroll, RTI filings and PAYE management
- Dividend planning and tax-efficient salary structuring for director-shareholders
Growing Business
- Full payroll for employed staff, including RTI and auto-enrolment pension compliance
- Management accounts delivered monthly or quarterly
- More frequent check-ins and proactive tax planning throughout the year
- Dedicated accountant who knows your business and responds within one working day
Awards & Recognition
Recognized across the UK for exceptional client service, fixed-fee transparency, and digital innovation.
Why Care Providers Choose Tax Care Accountants
Industry-Leading Experts
Specialist accountants for the care sector, with real depth in welfare services VAT, rota-based payroll and CQC financial reporting. We can report by home, branch or service, so you can see exactly where a package or a site is making money and where agency cover is eating the margin.
Transparent Pricing
We offer fixed fees with no hidden costs and a price match guarantee.
Dedicated Account Manager
Your dedicated account manager is always ready to assist with your accounting inquiries.
Satisfaction Guarantee
We back our service with a 100% commitment to your satisfaction, promising to make it right if you are not fully happy with the quality of our work or customer service.
Modern Yet Traditional
We blend modern accounting practices with traditional values to deliver an award-winning service.
Hassle-Free Accounting
We provide a simple, paperless accounting service designed to save your time and money.
Client's Review
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Trustindex verifies that the original source of the review is Google.
Trustindex verifies that the original source of the review is Google.
Trustindex verifies that the original source of the review is Google.
Trustindex verifies that the original source of the review is Google.
Trustindex verifies that the original source of the review is Google.
Trustindex verifies that the original source of the review is Google.
Trustindex verifies that the original source of the review is Google.
Trustindex verifies that the original source of the review is Google.Fast Easy and Simple Sign Up in 3 Steps
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Frequently Ask Question
We Have Greate Answer
Most do. Care income is normally exempt from VAT, which means the VAT on agency staff, food, energy and maintenance cannot be reclaimed, and payroll accounts for most of the cost base. The rules around minimum wage, sleep-ins and travel time are unforgiving, and CQC takes an active interest in your finances. A specialist accountant typically saves more than the monthly fee through better planning and accurate claims.
Tax Care Accountants packages start from £29.95 per month for self-employed providers and from £55 per month for limited companies, including new CQC registrants and single-branch home care agencies. Care homes, agencies with payroll and multi-site groups are quoted individually based on staff numbers, VAT position and the number of sites. Pricing is fixed, with no hourly rates and no charges for phone calls.
Care homes do not normally charge VAT on care fees. Welfare services supplied by a state-regulated provider are exempt from VAT, and in England CQC registration is what makes a provider state-regulated. The trade-off is that VAT on costs cannot be reclaimed. If the home also has standard-rated income, room hire, concessions, meals sold to visitors, intercompany charges, VAT registration can become compulsory once that taxable turnover crosses the threshold.
Landfill Tax is paid by the operator of the landfill or disposal site, not by businesses sending waste there — though those costs usually pass down the chain as gate fees. For 2026/27 the standard rate is £130.75 per tonne and the lower rate £8.65 per tonne in England and Northern Ireland, with aligned devolved equivalents in Scotland and Wales. If you operate a site, Taxcare manages your registration and returns.
Yes. Waste collection, disposal, recovery and material sales can attract different VAT treatments, and construction-related work may fall under the reverse charge. Taxcare sets up your VAT correctly, prepares and files returns, and keeps you MTD-compliant via QuickBooks or Xero.
