Kids cough up VAT

You’re never too young to learn about the intricacies of the VAT system, as the little folk who pour into Tumble Tots play centres are finding out.

The tiny tots have been drawn into a VAT battle with the taxman because their mums and dads have not been paying VAT on Tumble Tot

T-shirts, nursery rhyme DVDs and kiddy insurance, among other items the tiny folk receive for their £19 membership fees. HMRC argued that VAT at the standard rate should be paid on this £19, while Tumble Tots argued that the zero and exempt rates should apply to some of the goods. In the end, the High Court ruled in favour of the taxman.

The little tykes will have to start coughing up. If you play, you gotta pay.

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