Fusion Consulting Triumphant in Historic HMRC Victory for Children’s Holiday Camp Provider

Fusion Consulting is delighted to announce its landmark victory for holiday camp provider RSR Sports Ltd (trading as Get Active Sports) following a lengthy process with HMRC in relation to the treatment of holiday camp income.

Established in 2012, Get Active Sports offers a range of services to children and schools nationwide encompassing childcare, activity camps, PPA and after school clubs. Since Get Active Sports’ inception, income relating to active care and holiday camps had been treated as VAT-incurring activity based.

However, both Get Active and Fusion Consulting felt that, with childcare being the primary purpose and therefore under the applicable VAT legislation, this important service should be exempt from VAT.

HMRC rejected Fusion Consulting’s initial error and submission claim and, after the subsequent ADR (Alternative Dispute Resolution) – also rejected by HMRC – Fusion Consulting proceeded with a full claim to the first tier tribunal in order to seek to overturn the decision.

Judge Beare heard the case in October 2019 and the Fusion Consulting team were today thrilled to receive his full decision which ruled in Get Active’s favour.

In concluding, Judge Beare stated: “The provision of activities which keep children stimulated and healthy while under the supervision of the childcare provider is surely no less a valid form of childcare than simply allowing children to watch television or to entertain themselves. And, given the present focus on obesity in children, a childcare provider adopting that approach is surely doing more for the welfare of the children in its care than the passive childcare provider mentioned above.”

Judge Beare further stated: “In my opinion, the mere fact that a childcare provider falling within the latter category has chosen to provide a more active approach to childcare does not mean that it should therefore be disqualified from falling within the exemption.”

Mitch Young (Director) led Fusion’s tax team, assisted by Richard Staunton (Independent VAT Expert).

RSR was represented in the litigation by Tim Brown.

Mitch Young commented: “This is a fantastic and deeply satisfying achievement for Fusion but, more importantly, our client Get Active. We are delighted to be involved in such a historic case in VAT law which no doubt will be referred to in future HMRC cases relating to childcare services.”

Rob Sherwood, Director of Get Active added: “A huge thank you to Fusion who worked closely on this case with us to ensure we stood the best chance of success.”

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