A TAX REMINDER

Readers from some time back will remember that in January 2017 I put an article out through AFO News about HM Revenue and Customs VAT Office asking us to ensure that stall rents, market traders, caterers etc. were charged VAT for those festivals that are registered for VAT.

This is simply a reminder. I repeat the article here as there has been some recent evidence in the news that the HM VAT Office are keeping an eye on it.

Don’t get caught out!

AFO NEWS

Market stalls and caterers to be taxed.

A recent ruling by HM Revenue and Customs VAT Office has changed the way that festivals and events registered for VAT should be charging the rent and concessions to market traders and caterers.

“HM Revenue & Customs VAT office has made a ruling, supported by a test case in English courts, resulting in the need to charge VAT at standard rate (currently 20% of total figure at December 2016), on rent, concession/tender rates paid by traders at festivals and events that are registered for VAT.

e.g. A £100 stall rent will now be £100 + VAT = £120.

This is of no benefit to the festival/event organiser – it is a TAX by HMRC.”

This of course only applies to festivals and events that are registered for VAT, not those who have yet to get to the VAT level.

Should anyone need further advice contact AFO office or your own accountants”.

SH

May 2018

Steve Heap: 16th May 2018 11:56:00