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Helping Unions Make Entertainments Make Money PowerPoint Presentation
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Helping Unions Make Entertainments Make Money

Helping Unions Make Entertainments Make Money

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Helping Unions Make Entertainments Make Money

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  1. Helping Unions Make Entertainments Make Money

    VATangles LLP
  2. Objectives

  3. Objectives No VAT on ticket sales
  4. Objectives No VAT on ticket sales No VAT on cloaks income
  5. Objectives No VAT on ticket sales No VAT on cloaks income No VAT on bar sales
  6. 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
  7. Who are VATangles LLP?

  8. Who are VATangles LLP? VAT consultants specialising in: Educational bodies
  9. Who are VATangles LLP? VAT consultants specialising in: Educational bodies Students’ Unions
  10. Who are VATangles LLP? VAT consultants specialising in: Educational bodies Students’ Unions Charities and their subsidiaries
  11. Who are VATangles LLP? VAT consultants specialising in: Educational bodies Students’ Unions Charities and their subsidiaries Healthcare institutions
  12. Who am I?

  13. Who am I? Noel Tyler
  14. Who am I? Noel Tyler First VAT Consultant to work with Students’ Unions – since 1991
  15. Who am I? Noel Tyler First VAT Consultant to work with Students’ Unions – since 1991 Worked with Loughborough since 1993
  16. 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
  17. 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
  18. 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
  19. The Beginning

  20. The Beginning 1990 – New VAT Directive
  21. The Beginning 1990 – New VAT Directive Financial sector
  22. The Beginning 1990 – New VAT Directive Financial sector Sports clubs
  23. The Beginning 1990 – New VAT Directive Financial sector Sports clubs Cultural services
  24. The Beginning 1990 – New VAT Directive Financial sector Sports clubs Cultural services Exemptions for charities
  25. The Beginning 1990 – New VAT Directive Financial sector Sports clubs Cultural services Exemptions for charities I wrote lead article on
  26. The Beginning 1990 – New VAT Directive Financial sector Sports clubs Cultural services Exemptions for charities I wrote lead article on Financial sector
  27. VAT and Entertainments - Historically

  28. VAT and Entertainments - Historically Everything subject to VAT;
  29. VAT and Entertainments - Historically Everything subject to VAT; However !!!!!
  30. VAT and Entertainments - Historically Everything subject to VAT; However !!!!! 1996 – Cheltenham & Gloucester College of Higher Education Students’ Union
  31. VAT and Entertainments - Historically Everything subject to VAT; However !!!!! 1996 – Cheltenham & Gloucester College of Higher Education Students’ Union Re: Graduation Balls and Freshers Balls
  32. More Recently

  33. More Recently 2003 – Hull Truck Theatre
  34. More Recently 2003 – Hull Truck Theatre HMC & E claimed VAT exemption re: Cultural Services
  35. 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
  36. 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?
  37. VAT and Cultural Services

  38. VAT and Cultural Services Article 132(1)(n) of the Principal VAT Directive
  39. 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
  40. 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”.
  41. VAT and Cultural Services Eligible Body
  42. VAT and Cultural Services Eligible Body is precluded from distributing, and does not distribute, any profit it makes;
  43. 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
  44. 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.
  45. VAT and Cultural Services VAT saved on ticket sales YES
  46. VAT and Cultural Services VAT saved on ticket sales YES VAT saved on cloaks income NO
  47. VAT and Cultural Services VAT saved on ticket sales YES VAT saved on cloaks income NO VAT saved on bar sales NO
  48. VAT and Cultural Services Still being fought for a number of Unions
  49. 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
  50. 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!!!!!
  51. VAT and Fundraising Activities

  52. VAT and Fundraising Activities Students’ Unions are charitable bodies – always were
  53. VAT and Fundraising Activities Students’ Unions are charitable bodies – always were Therefore should be entitled to charity VAT exemptions
  54. 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
  55. Fundraising Activities VAT Exemptions Include Bar Sales!!!

  56. VAT and Fundraising Activities VAT saved on ticket sales YES
  57. VAT and Fundraising Activities VAT saved on ticket sales YES VAT saved on cloaks income YES
  58. VAT and Fundraising Activities VAT saved on ticket sales YES VAT saved on cloaks income YES VAT saved on bar sales YES
  59. VAT and Fundraising Activities EU Law – Article 131(1)(o) – Principle VAT Directive
  60. 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”.
  61. 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”.
  62. VAT and Fundraising Activities Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT
  63. 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 –
  64. 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
  65. 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
  66. 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”.
  67. VAT and Fundraising Activities Note 4 to Group 12
  68. 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
  69. 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
  70. 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
  71. Primary Purpose

  72. Primary Purpose Primary Purpose Not a requirement of EU law - merely an important purpose – Newsvendors Benevolent Institution
  73. 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
  74. 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”
  75. 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
  76. Primary Purpose HMRC can only substitute statement of primary purpose where:
  77. Primary Purpose HMRC can only substitute statement of primary purpose where: They can show purposer is not telling the truth
  78. 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;
  79. 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
  80. Promoted as Primary Purpose

  81. Promoted as Primary Purpose Again not an EU law requirement
  82. 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
  83. 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
  84. 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.
  85. 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
  86. Fifteen Events of a Type

  87. Fifteen Events of a Type Types can include, for example, live acts, DJs, balls, parties, comedy, karaoke, quiz, magicians, conferences
  88. 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
  89. 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
  90. In a Location

  91. In a Location University Campus to be safe
  92. In a Location University Campus to be safe; however May be individual buildings or even rooms
  93. In a Location University Campus to be safe; however May be individual buildings or even rooms Compass Catering
  94. Where are HMRC on this?

  95. Where are HMRC on this? They don’t like it, but can’t decide why
  96. Where are HMRC on this? They don’t like it, but can’t decide why About as static as Bambi on Ice!
  97. 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
  98. 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??
  99. 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?
  100. How do we go forward?

  101. How do we go forward? Union’s position is overwhelmingly strong and correct – Mr John Tallon QC
  102. 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
  103. 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
  104. 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
  105. 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!
  106. Any questions?

  107. Thank you for listening