Hairdressers win VAT battle over membership rules
The National Hairdressers Federation wins £20,000 plus interest and costs after the taxman drops its case against over membership fees
THE NATIONAL HAIRDRESSERS FEDERATION has won back £20,000 plus interest and costs from HM Revenue & Customs after the tax-man changed the rules over membership subscriptions.
Previously, the tax-man allowed non-profit-making membership organisations charging a membership fee to use extra-statutory concession 3.35 to apportion between standard-rated, zero-rated and exempt VAT elements.
The hairdressers won an initial tribunal against the tax-man, and were awaiting payment, when the tax-man changed the rules.
With another tribunal looming, the tax-man again backed down. Advisors from CCH helped the NHF receive its settlement as well as interest and costs.
Glyn Edwards, VAT consultant at CCH, said: “When we submitted the pre-tribunal statement case, HMRC’s advocate agreed with me that they should not have applied the new rules to a prior appeal and the case was dropped.
“Even better for the NHF was the fact that they not only received the £20,000 plus interest they were owed; they were also awarded costs, which almost never happens with HMRC.”
