Forum

• # 101115
• Fri 22 Aug 2014 05:58 AM

Just looking for advice. A client of mine runs a soft play area has been advised by'someone' that the soft play area is exempt for vat. Upon reading the guidance on the hmrc website I disagree and believe it to be standard rate. Anyone else come across this and can shed light on this. Doubting myself and want to let the client know.

Thanks guys

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• # 101139
• Fri 22 Aug 2014 05:22 PM

The only thing I can think of is that 'someone' is getting confused with childrens clothing? It's not exempt from VAT.  Childrens toys aren’t.  Unless, of course, the supplier of the equipment isn’t registered for VAT.

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• # 101140
• Fri 22 Aug 2014 05:38 PM

> I would get advice from HMRC on this as there may be partial exemptions for certain income streams depending on how you classify them.

I used to loll after a private members club for children in Chelsea and have also had a few nurseries as clients I'm the past.

The best thing to do is list all the income streams

Eg admissions. Parties. Catering etcetera call HMRC and run through it with them and they will let you know what they consider standard rate, zero rated and exempt supplies, bear in mind if you have a partial exemption then you will only be able to claim a proportion of the vat relating to the items applies to standard and zero rated supplies.

Kind regards
Stuart
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>
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• # 101141
• Fri 22 Aug 2014 05:45 PM

Stuart Wildman said:

“> I would get advice from HMRC on this as there may be partial exemptions for certain income streams depending on how you classify them.

I used to loll after a private members club for children in Chelsea and have also had a few nurseries as clients I'm the past.

The best thing to do is list all the income streams

Eg admissions. Parties. Catering etcetera call HMRC and run through it with them and they will let you know what they consider standard rate, zero rated and exempt supplies, bear in mind if you have a partial exemption then you will only be able to claim a proportion of the vat relating to the items applies to standard and zero rated supplies.

Kind regards
Stuart
>

>”

Thanks guys that makes more sense. Will give them a call next week but it doesn't come under welfare of children so that's why I think it should vatable.

Many thanks

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