Helping Unions Make Entertainments Make Money VATangles LLP.
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Transcript of Helping Unions Make Entertainments Make Money VATangles LLP.
![Page 1: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/1.jpg)
Helping Unions Make Entertainments Make Money
VATangles LLP
![Page 2: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/2.jpg)
Objectives
![Page 3: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/3.jpg)
Objectives
• No VAT on ticket sales
![Page 4: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/4.jpg)
Objectives
• No VAT on ticket sales• No VAT on cloaks income
![Page 5: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/5.jpg)
Objectives
• No VAT on ticket sales• No VAT on cloaks income• No VAT on bar sales
![Page 6: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/6.jpg)
Objectives
• No VAT on ticket sales• No VAT on cloaks income• No VAT on bar sales• To minimise the loss of irrecoverable VAT on
purchases re: the above
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Who are VATangles LLP?
![Page 8: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/8.jpg)
Who are VATangles LLP?
• VAT consultants specialising in:– Educational bodies
![Page 9: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/9.jpg)
Who are VATangles LLP?
• VAT consultants specialising in:– Educational bodies– Students’ Unions
![Page 10: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/10.jpg)
Who are VATangles LLP?
• VAT consultants specialising in:– Educational bodies– Students’ Unions– Charities and their subsidiaries
![Page 11: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/11.jpg)
Who are VATangles LLP?
• VAT consultants specialising in:– Educational bodies– Students’ Unions– Charities and their subsidiaries– Healthcare institutions
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Who am I?
![Page 13: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/13.jpg)
Who am I?
• Noel Tyler
![Page 14: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/14.jpg)
Who am I?
• Noel Tyler• First VAT Consultant to work with Students’
Unions – since 1991
![Page 15: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/15.jpg)
Who am I?
• Noel Tyler• First VAT Consultant to work with Students’
Unions – since 1991• Worked with Loughborough since 1993
![Page 16: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/16.jpg)
Who am I?
• Noel Tyler• First VAT Consultant to work with Students’
Unions – since 1991• Worked with Loughborough since 1993• Currently act for approximately 12 Students’
Unions
![Page 17: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/17.jpg)
Who am I?
• Noel Tyler• First VAT Consultant to work with Students’
Unions – since 1991• Worked with Loughborough since 1993• Currently act for approximately 12 Students’
Unions• Spend approx. 75% of my working life in or
with Students’ Unions
![Page 18: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/18.jpg)
Who am I?
• Noel Tyler• First VAT Consultant to work with Students’
Unions – since 1991• Worked with Loughborough since 1993• Currently act for approximately 12 Students’
Unions• Spend approx. 75% of my working life in or with
Students’ Unions• Saved > £5 million for Students’ Unions
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The Beginning
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The Beginning
• 1990 – New VAT Directive
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The Beginning
• 1990 – New VAT Directive– Financial sector
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The Beginning
• 1990 – New VAT Directive– Financial sector– Sports clubs
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The Beginning
• 1990 – New VAT Directive– Financial sector– Sports clubs– Cultural services
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The Beginning
• 1990 – New VAT Directive– Financial sector– Sports clubs– Cultural services– Exemptions for charities
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The Beginning
• 1990 – New VAT Directive– Financial sector– Sports clubs– Cultural services– Exemptions for charities
• I wrote lead article on
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The Beginning
• 1990 – New VAT Directive– Financial sector– Sports clubs– Cultural services– Exemptions for charities
• I wrote lead article on– Financial sector
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VAT and Entertainments - Historically
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VAT and Entertainments - Historically
• Everything subject to VAT;
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VAT and Entertainments - Historically
• Everything subject to VAT;• However !!!!!
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VAT and Entertainments - Historically
• Everything subject to VAT;• However !!!!!• 1996 – Cheltenham & Gloucester College of
Higher Education Students’ Union
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VAT and Entertainments - Historically
• Everything subject to VAT;• However !!!!!• 1996 – Cheltenham & Gloucester College of
Higher Education Students’ Union• Re: Graduation Balls and Freshers Balls
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More Recently
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More Recently
• 2003 – Hull Truck Theatre
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More Recently
• 2003 – Hull Truck Theatre• HMC & E claimed VAT exemption re: Cultural
Services
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More Recently
• 2003 – Hull Truck Theatre• HMC & E claimed VAT exemption re: Cultural
Services• Would have cost theatre >£2million in VAT on
construction and fitting out
![Page 36: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/36.jpg)
More Recently
• 2003 – Hull Truck Theatre• HMC & E claimed VAT exemption re: Cultural
Services• Would have cost theatre >£2million in VAT on
construction and fitting out• Why not for Students’ Unions?
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VAT and Cultural Services
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VAT and Cultural Services
• Article 132(1)(n) of the Principal VAT Directive
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VAT and Cultural Services
• Article 132(1)(n) of the Principal VAT Directive• Item 2(b) of Group 13 of Schedule 9 to the
Value Added Tax Act 1994
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VAT and Cultural Services
• Article 132(1)(n) of the Principal VAT Directive• Item 2(b) of Group 13 of Schedule 9 to the
Value Added Tax Act 1994– Exempts from VAT “The supply by an eligible body
of a right of admission to a theatrical, musical or choreographic event of a cultural nature”.
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VAT and Cultural Services
• Eligible Body
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VAT and Cultural Services
• Eligible Body– is precluded from distributing, and does not
distribute, any profit it makes;
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VAT and Cultural Services
• Eligible Body– is precluded from distributing, and does not
distribute, any profit it makes;– applies any profits made to the continuance or
improvement of the facilities made available by means of the supply
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VAT and Cultural Services
• Eligible Body– is precluded from distributing, and does not
distribute, any profit it makes;– applies any profits made to the continuance or
improvement of the facilities made available by means of the supply; and
– is managed and administered on an essentially voluntary basis by persons who have no direct or indirect interest in its activities.
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VAT and Cultural Services
• VAT saved on ticket sales YES
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VAT and Cultural Services
• VAT saved on ticket sales YES• VAT saved on cloaks income NO
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VAT and Cultural Services
• VAT saved on ticket sales YES• VAT saved on cloaks income NO• VAT saved on bar sales NO
![Page 48: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/48.jpg)
VAT and Cultural Services
• Still being fought for a number of Unions
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VAT and Cultural Services
• Still being fought for a number of Unions• Unarguable going forward now due to change
of governance under Charities Act 2006
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VAT and Cultural Services
• Still being fought for a number of Unions• Unarguable going forward now due to change
of governance under Charities Act 2006• However!!!!!
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VAT and Fundraising Activities
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VAT and Fundraising Activities
• Students’ Unions are charitable bodies – always were
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VAT and Fundraising Activities
• Students’ Unions are charitable bodies – always were
• Therefore should be entitled to charity VAT exemptions
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VAT and Fundraising Activities
• Students’ Unions are charitable bodies – always were
• Therefore should be entitled to charity VAT exemptions
• Also available to wholly owned subsidiaries of charitable bodies
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Fundraising Activities VAT Exemptions Include Bar Sales!!!
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VAT and Fundraising Activities
• VAT saved on ticket sales YES
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VAT and Fundraising Activities
• VAT saved on ticket sales YES• VAT saved on cloaks income YES
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VAT and Fundraising Activities
• VAT saved on ticket sales YES• VAT saved on cloaks income YES• VAT saved on bar sales YES
![Page 59: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/59.jpg)
VAT and Fundraising Activities
• EU Law – Article 131(1)(o) – Principle VAT Directive
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VAT and Fundraising Activities
• EU Law – Article 131(1)(o) – Principle VAT Directive– Exempts from VAT “The supply of goods or
services by [charitable bodies] in connection with fund raising events organised exclusively for their own benefit”.
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VAT and Fundraising Activities
• Article 13A(1) continues– “Member States may introduce any necessary
restrictions in particular as regards the number of events or the amount of receipts which give rise to the exemption”.
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VAT and Fundraising Activities
• Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT
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VAT and Fundraising Activities
• Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT
• “The supply of goods and services by a charity in connection with an event –
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VAT and Fundraising Activities
• Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT
• “The supply of goods and services by a charity in connection with an event –– (a) that is organised by that charity, or jointly by
more than one charity; and
![Page 65: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/65.jpg)
VAT and Fundraising Activities
• Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT
• “The supply of goods and services by a charity in connection with an event –– (a) that is organised by that charity, or jointly by
more than one charity; and– (b) whose primary purpose is the raising of
money; and
![Page 66: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/66.jpg)
VAT and Fundraising Activities
• Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT
• “The supply of goods and services by a charity in connection with an event –– (a) that is organised by that charity, or jointly by
more than one charity; and– (b) whose primary purpose is the raising of money;
and– (c) that is promoted as being primarily for the raising
of money”.
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VAT and Fundraising Activities
• Note 4 to Group 12
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VAT and Fundraising Activities
• Note 4 to Group 12• Exemption applies to up to and including
fifteen events of a type in a location in a financial year
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VAT and Fundraising Activities
• Note 4 to Group 12• Exemption applies to up to and including
fifteen events of a type in a location in a financial year
• Where more than fifteen event are help of a type in a location all become subject to VAT
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VAT and Fundraising Activities
• Note 4 to Group 12• Exemption applies to up to and including
fifteen events of a type in a location in a financial year
• Where more than fifteen event are help of a type in a location all become subject to VAT
• Fifteen events of a type in a location does not include events of a type where the total funds raised in a week come to <£1,000
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Primary Purpose
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Primary Purpose
• Primary Purpose– Not a requirement of EU law - merely an
important purpose – Newsvendors Benevolent Institution
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Primary Purpose
• Primary Purpose– Not a requirement of EU law - merely an
important purpose – Newsvendors Benevolent Institution
– Possible arguments re: Graduation Balls and Freshers Balls
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Primary Purpose
• Primary Purpose– Not a requirement of EU law - merely an
important purpose – Newsvendors Benevolent Institution
– Possible arguments re: Graduation Balls and Freshers Balls
– Otherwise must be with the “purposer”
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Primary Purpose
• Primary Purpose– Not a requirement of EU law - merely an
important purpose – Newsvendors Benevolent Institution
– Possible arguments re: Graduation Balls and Freshers Balls
– Otherwise must be with the “purposer”– What other ‘primary purpose’ can there be
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Primary Purpose
• HMRC can only substitute statement of primary purpose where:
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Primary Purpose
• HMRC can only substitute statement of primary purpose where:– They can show purposer is not telling the truth
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Primary Purpose
• HMRC can only substitute statement of primary purpose where:– They can show purposer is not telling the truth; or– They can show purposer is confused;
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Primary Purpose
• HMRC can only substitute statement of primary purpose where:– They can show purposer is not telling the truth; or– They can show purposer is confused; or– Purposer is truthful but no other reasonable
businessman put in the same conditions would have made the same decision
![Page 80: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/80.jpg)
Promoted as Primary Purpose
![Page 81: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/81.jpg)
Promoted as Primary Purpose
• Again not an EU law requirement
![Page 82: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/82.jpg)
Promoted as Primary Purpose
• Again not an EU law requirement• HMRC guidelines suggested strapline etc. –
This event is raising funds for ***** Students’ Union, or This is a **** Students’ Union fundraiser
![Page 83: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/83.jpg)
Promoted as Primary Purpose
• Again not an EU law requirement• HMRC guidelines suggested strapline etc. –
This event is raising funds for ***** Students’ Union, or This is a **** Students’ Union fundraiser
• To appear on posters, flyers and tickets
![Page 84: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/84.jpg)
Promoted as Primary Purpose
• Again not an EU law requirement• HMRC guidelines suggested strapline etc. –
This event is raising funds for ***** Students’ Union, or This is a **** Students’ Union fundraiser
• To appear on posters, flyers and tickets• Also possibly minuted in Trustees minutes,
pop-up banners etc.
![Page 85: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/85.jpg)
Promoted as Primary Purpose
• Again not an EU law requirement• HMRC guidelines suggested strapline etc. – This
event is raising funds for ***** Students’ Union, or This is a **** Students’ Union fundraiser
• To appear on posters, flyers and tickets• Also possibly minuted in Trustees minutes, pop-
up banners etc.• Suggested minuted meetings but these are not
requirements
![Page 86: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/86.jpg)
Fifteen Events of a Type
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Fifteen Events of a Type
• Types can include, for example, live acts, DJs, balls, parties, comedy, karaoke, quiz, magicians, conferences
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Fifteen Events of a Type
• Types can include, for example, live acts, DJs, balls, parties, comedy, karaoke, quiz, magicians, conferences
• One Union – Over 50 separate qualifying events per annum
![Page 89: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/89.jpg)
Fifteen Events of a Type
• Types can include, for example, live acts, DJs, balls, parties, comedy, karaoke, quiz, magicians, conferences
• One Union – Over 50 separate qualifying events per annum
• Events must have their Oxford English Dictionary definition – Blaydon Rugby Football Club
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In a Location
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In a Location
• University Campus to be safe
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In a Location
• University Campus to be safe; however• May be individual buildings or even rooms
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In a Location
• University Campus to be safe; however• May be individual buildings or even rooms• Compass Catering
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Where are HMRC on this?
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Where are HMRC on this?
• They don’t like it, but can’t decide why
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Where are HMRC on this?
• They don’t like it, but can’t decide why• About as static as Bambi on Ice!
![Page 97: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/97.jpg)
Where are HMRC on this?
• They don’t like it, but can’t decide why• About as static as Bambi on Ice!• Latest – constitutions require Unions to
provide social, cultural, sporting and recreational activities
![Page 98: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/98.jpg)
Where are HMRC on this?
• They don’t like it, but can’t decide why• About as static as Bambi on Ice!• Latest – constitutions require Unions to
provide social, cultural, sporting and recreational activities
• Also – events of a regular basis??
![Page 99: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/99.jpg)
Where are HMRC on this?
• They don’t like it, but can’t decide why• About as static as Bambi on Ice!• Latest – constitutions require Unions to
provide social, cultural, sporting and recreational activities
• Also – events of a regular basis??• Requirement to minute intention?
![Page 100: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/100.jpg)
How do we go forward?
![Page 101: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/101.jpg)
How do we go forward?
• Union’s position is overwhelmingly strong and correct – Mr John Tallon QC
![Page 102: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/102.jpg)
How do we go forward?
• Union’s position is overwhelmingly strong and correct – Mr John Tallon QC
• HMRC will throw in the towel if they lose the ‘primary purpose’ test
![Page 103: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/103.jpg)
How do we go forward?
• Union’s position is overwhelmingly strong and correct – Mr John Tallon QC
• HMRC will throw in the towel if they lose the ‘primary purpose’ test
• Potential savings here are substantial
![Page 104: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/104.jpg)
How do we go forward?
• Union’s position is overwhelmingly strong and correct – Mr John Tallon QC
• HMRC will throw in the towel if they lose the ‘primary purpose’ test
• Potential savings here are substantial• Truly nothing to lose
![Page 105: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/105.jpg)
How do we go forward?
• Union’s position is overwhelmingly strong and correct – Mr John Tallon QC
• HMRC will throw in the towel if they lose the ‘primary purpose’ test
• Potential savings here are substantial• Truly nothing to lose • Join me in the battle!
![Page 106: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/106.jpg)
Any questions?
![Page 107: Helping Unions Make Entertainments Make Money VATangles LLP.](https://reader035.fdocuments.net/reader035/viewer/2022070306/5519fa7d5503464c588b49b1/html5/thumbnails/107.jpg)
Thank you for listening