BRC calls for break for VAT kids

A rapid rise in obesity levels is leading to calls for a change in the rules
on VAT on children’s clothes.

The tax is not levied on the clothing of children up to the age of 14. But
the rules are defined with reference to the maximum size measurements. As
children get bigger quicker, they are growing out of the rules before they reach
the age of 14.

Advisers say recent tribunal cases highlight a bulging problem with
childrens’ clothes.

A tax update from KPMG earlier this month said: ‘The appellant was
unsuccessful in arguing for zero rating for uniform which though sold to 11 year
olds starting secondary school, had not been adapted to fit the shape of younger
children and was big enough to be worn by 14 year olds.’

The British Retail Consortium weighed in today. Jane Milne, director of
business environment at the BRC, told
: ‘For so far back in time there has been zero VAT on children’s
clothing as part of government policy to support families. But the point with
obesity, and better nutrition levels in general, children are getting bigger.
The upper limits have to change so that many childrens’ clothing falls within
the zero VAT band.’

Further Reading:

The Times story

Related reading