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HMRC publish ground-breaking Business Brief based on case led by Fusion Consulting

In November 2020, a landmark case led by Fusion Consulting was published by HMRC as a ground-breaking Business Brief. The publication detailed how Fusion Consulting had helped their client through the First-tier Tribunal (FTT) in relation to the VAT treatment of school holiday clubs.

HMRC had initially refused that the services provided were exempt from VAT, and ultimately when the case had proceeded to the FTT, it was ruled that the services were in fact exempt. As a result of the ruling, any tax incorrectly overpaid was refunded back to their client.

The FTT concluded that as there was sufficient evidence that our client had provided holiday camp services to parents and their children, which was exempt from VAT due to the provision of welfare during the school holidays. Such supplies are exempt from VAT, subject to particular exemptions.

The Business Brief applies to any organisation that currently makes supplies of school holiday club services and their advisers.

Incorrect ruling requests can be made to HMRC provided that there is sufficient evidence. Fusion Consulting was able to provide such evidence to HMRC and the FTT to sufficiently meet the conditions of the VAT provisions.

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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