Content
After U, Gordon?
Ups And Downs
Gift Horse
What A Relief!
Second Thoughts?
Last One Out...
Penalty Shoot-Out
Ain't Necessarily So
Going, Going, Gone
Papers In Order?
Death And Taxes
Passing The Buck
Hire Higher
Back Taxes, Taxes Back
Options Open
Extortion?
Sick Note
Cats And Dogs
Old-Fashioned Money
I Thee Endow?
Mother's Rights
Countdown
Nowhere To Hide
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Suppose you send your child to private school for an exorbitant fee. What could be more frustrating than the child being off sick? All that money for nothing. Many schools offer an "insurance" scheme - for a small amount added to the fee, you will get a refund if the child is absent for an extended period, usually a week or more. Once the child has been ill for three days, the insured parent might reckon they need a couple of days more to get over it properly. HMRC decided that the extra charge for the refund scheme was subject to VAT, even if the school fees themselves were exempt - the scheme wasn't "education", so it didn't qualify for any VAT relief. The High Court judge disagreed. In reality, there wasn't a separate scheme at all. There were two deals on offer for slightly different prices: education with no refunds, and education with the possibility of a refund. Either way, the supply was only education, and it was exempt. It's worth remembering that HMRC don't always get this sort of technical decision right. If they give you a ruling that you don't like, it's worth going over it carefully - we'll be happy to help.  |
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