Health and Social Care Levy Calculator

The Health and Social Care Levy (HSCL) is a tax levied on certain businesses in the UK that provide health and social care services. This calculator helps you determine your HSCL liability based on your business's turnover and other factors.

What is the Health and Social Care Levy?

The Health and Social Care Levy (HSCL) is a tax introduced by the UK government to fund the National Health Service (NHS) and social care services. It applies to businesses that provide health and social care services, including:

Hospitals and healthcare providers
Social care services
Private healthcare providers
Some other businesses providing related services

The levy was introduced in April 2023 and replaced the previous Health Service Providers Levy (HSPL). The HSCL is designed to be more transparent and easier to understand than its predecessor.

How is the HSCL calculated?

The HSCL is calculated based on your business's turnover and the type of services you provide. The basic formula is:

HSCL = (Turnover × Levy Rate) - Reliefs

The levy rate varies depending on the type of business and the services provided. The current rates are:

12.5% for NHS hospitals and providers
10% for social care providers
5% for private healthcare providers

Reliefs may be available for certain businesses, such as those providing services to vulnerable groups or those with a history of financial hardship.

Who pays the HSCL?

The HSCL applies to businesses that provide health and social care services. This includes:

NHS hospitals and healthcare providers
Social care services
Private healthcare providers
Some other businesses providing related services

Businesses that do not provide these services are not subject to the HSCL.

HSCL compliance requirements

Businesses subject to the HSCL must:

Register with HMRC
Calculate their HSCL liability
Pay the levy on time
Keep records of their calculations and payments

Failure to comply with HSCL requirements can result in penalties and interest charges.

HSCL calculation examples

Let's look at some examples of how the HSCL is calculated for different types of businesses.

Example 1: NHS Hospital

An NHS hospital with a turnover of £10 million would pay:

HSCL = (£10,000,000 × 12.5%) = £1,250,000

Example 2: Social Care Provider

A social care provider with a turnover of £5 million would pay:

HSCL = (£5,000,000 × 10%) = £500,000

Example 3: Private Healthcare Provider

A private healthcare provider with a turnover of £2 million would pay:

HSCL = (£2,000,000 × 5%) = £100,000

HSCL FAQ

What is the difference between the HSCL and the HSPL?

The Health and Social Care Levy (HSCL) replaced the Health Service Providers Levy (HSPL) in April 2023. The HSCL is designed to be more transparent and easier to understand than the HSPL.

Who is responsible for calculating the HSCL?

Businesses subject to the HSCL are responsible for calculating their own liability. However, they must register with HMRC and keep records of their calculations and payments.

What reliefs are available for the HSCL?

Reliefs may be available for certain businesses, such as those providing services to vulnerable groups or those with a history of financial hardship. Businesses should consult the HMRC guidance for more information.

When is the HSCL due?

The HSCL is due on the same date as your business's VAT return, which is typically on the 7th day of the month following the end of your accounting period.

What happens if I don't pay the HSCL on time?

Failure to pay the HSCL on time can result in penalties and interest charges. Businesses should ensure they have enough funds available to pay the levy when it is due.