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It's rare in my line of work that a news story is worthy of sharing


Flex

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I get daily updates about accountancy, most I could care less for but this one caught my eye, especially as it's on my doorstep:

 

'A Norwich lapdancing club has lost a legal appeal for some of its services to be exempt from VAT.

The appeal to the first-tier tax tribunal was about the application of VAT to the supplies provided by the Sugar & Spice club to its dancers.

Dancers earned income from customers for dancing on the dance floor or for private performances in booths.

Sugar & Spice argued that the booths it provided for dancers should be treated as a supply of land and therefore exempt from VAT. HMRC argued that the services provided to the dancers - which included advertising, music, lighting, heating, cleaning, management and security - should be standard rated.

The tribunal dismissed the club's appeal.

Charles Hellier, the tribunal judge, ruled that the provision of the booth was not "economically" separate from the other elements of the supply. This is because the dancer’s ability to make money in a booth was dependant on using the main part of the club to attract customers for private dances.

Jim Burberry, Baker Tilly VAT partner, who has summarised the case, said: "This is the latest decision in a series of cases relating to the VAT and tax affairs of businesses in this sector.

"This case should help provide some clarity on the application of VAT to the services provided by other firms operating similar business models," Burberry said.'

 

For the record I have never been in this establishment but good on them for trying this, I doubt they would pass the 20% onto punters if they had succeeded though.

Edited by Flex
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I'm not sure what I just read, but what I'm taking from it is you live near a Strip Club....When's the next night out round yours?!?!?!

 

Reminds me of when I went out for a couple of "quiet drinks" after work with a workmate and ended up rolling in at about 5am after spending about £500 in a strip club we had stumbled across on our travels. Funny thing was, if i remember correctly it was £20 a dance so we must have had no end of them.

 

From then on, everyone else in the office was always asking me when I was going out for a few quiet drinks next.

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