BRC calls for break for VAT kids
Rapid rise in obesity is causing kids to grow out of traditional VAT rules on childrens' clothing
Rapid rise in obesity is causing kids to grow out of traditional VAT rules on childrens' clothing
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
The
Times: ‘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:
More about:
The numbers you crunch tell a story. Your expertis...
16yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe firm says that the U-turn 'does not alter the need for a fundamental review of the way we tax work' and that the current tax system is in need of ...
View articleFurther corporation tax cuts and reliefs for cutting-edge tech businesses have been pledged by prime minister Theresa May, ahead of Wednesday’s Autumn...
View articleHMRC is under fire for allegedly obtaining warrants unlawfully for the detainment of four former KPMG partners Read More...
View articleCaroline Fleet joins London-based firm Gabelle from KPMG Read More...
View articleDavid Kilshaw to join EY's private client practice Read More...
View articleKPMG international finds UK's cut to top rate of personal tax has already made an impact on its attractiveness to executives Read More...
View articleHMRC this week announced Edward Troup and Ian Barlow will be filling the roles vacated by Dave Hartnett and Mike Clasper Read More...
View articleMore than 100 KPMG tax trainees to take new ICAS qualification Read More...
View article