In this month’s round up of all the tax news, kickboxing company loses VAT case, Dixons loses bouncing cheque claim, TheWorks faces £350k VAT bill, and homeowners face seismic CGT shift
Kickboxing company Premier Family Martial Arts LLP has lost a VAT dispute with HMRC, as it tried to appeal that kickboxing should be exempt from VAT because it is a form of tuition, covering a subject that is part of school education.
The First Tier Tribunal (FTT) ruled against the kickboxing company when the judge, Tony Beare, said ‘kickboxing is not an activity which is commonly taught at schools or universities in the European Union.’
This dispute started on 7 April 2017 after HMRC began an VAT enquiry into Premier Family Martial Arts LLP (PFMA). HMRC claimed the company was liable for a VAT bill of £411,497 for output tax for its supplies of kickboxing classes for the period from 1 August 2011 to 2017. As the supplies for the classes were not exempt they were taxed at the standard rate of 20% VAT.
