Tag Archives: bookkeeping

VAT on School Fees Challenged

VAT on school fees started to be charged from 1st January 2025. It was announced in Labours 2024 budget and quickly ushered in. Some parents have decided to challenge the move. Below is further information provided by an extract from Business and Accountancy Daily.

The High Court has decided to fast track an appeal by six parents against Labour’s VAT raid on private school fees

The parents’ barrister Lord David Pannick KC argued at the High Court that the 20% VAT charge on fees was a breach of human rights.

Legal action challenging the government’s decision to levy VAT on independent school fees will be fast-tracked, the High Court of England and Wales decided.

In a court hearing today, Lord Pannick KC, acting on behalf of six claimants supported by the Independent Schools Council (ISC), argued that parents needed certainty given the effects of VAT were already being felt. This follows the implementation of the policy, which came into effect on 1 January 2025.

The government’s counsel opposed the request, asking for more time to consider the evidence. However, Mr Justice Chamberlain dismissed the government’s arguments and agreed that the case should be expedited. 

Julie Robinson, CEO of the ISC, said: ‘This is an unprecedented tax on education and it is right that its compatibility with human rights law is tested. We are glad that the High Court has recognised the urgency of this case and we look forward to making our legal arguments as soon as is possible.’

Kingsley Napley partner and head of public law, Sophie Kemp, who is advising the claimants, said: ‘Mr Justice Chamberlain has today agreed that our case will be heard on a “rolled-up” basis meaning the permission stage and substantive arguments can be dealt with in a combined hearing. This should help with early resolution of the matter.’

A date is yet to be set for the case, which is being brought against Chancellor Rachel Reeves as head of the Treasury.

At the same hearing, it was agreed that the ISC’s case, led by law firm Kingsley Napley, would be joined with the separate case being brought by Education Not Discrimination, represented by Sinclairslaw.

Although there is no date set for the first session it is expected to go ahead before the Easter break.

By Wills Drysdale, Business & Accountancy Daily 17th January 2025

Barnowl Bookkeeping is here for your business : services include VAT, CIS, Bookkeeping, Self Assessment. Based in Norfolk within easy reach of King’s Lynn, Swaffham, Wisbech, Downham Market and the North Norfolk Coast.

Double Cab Pick Ups Guidance Change

Guidance released by HMRC on 12 February 2024 : As from 01 July 2024 double cab pick ups (DCPUs) with a payload of 1 tonne or more were to be treated as cars (not goods vehicles) for both capital allowance and benefit in kind purposes.

On 19 February the government announced that it is withdrawing the guidelines on the afternoon of 19/02/24 . DCPUs  will now continue to be treated as goods vehicles for tax purposes.

Nigel Huddleston, Financial Secretary to the Treasury said ““We will change the law at the next available Finance Bill in order to avoid tax outcomes that could inadvertently harm farmers, van drivers and the UK’s economy.”

There will no longer be an increase in the benefit in kind for private use of a double cab pick up. The capital allowances available in the first year of use will not be reduced.

This move also helps keep the tax system a little more simple as the withdrawn guidance for double cab pick ups had not changed their status as a goods vehicle for VAT purposes.

The arrangements that HMRC had announced on 12 Feb 2024 to help DCPU owners adapt to the updated guidance are also now redundant.

DCPUs with a payload of less than one tonne are to continue to be treated as cars.

For further information refer to the HMRC website :

Update on HMRC Double Cab Pick Up Guidance – GOV.UK (www.gov.uk)

Barnowl Bookkeeping is here to help you with your business. Based near King’s Lynn with easy access to Downham Market, Wisbech, Swaffham and the Norfolk Coast.

Services Overview – www.barnowl-bookkeeping.co.uk

HMRC Grant for the Self Employed No. 2

HMRC are opening their online portal for the second grant for the self employed on 17th August 2020

They are currently writing to self-employed people who may be eligible so you may receive a letter giving you a date to make a claim. They can claim any time between the allocated date and the 19‌‌ October 2020.

The eligibility criteria for the second grant is exactly the same as the first grant – so self-employed people who were eligible for the first SEISS grant will be eligible for the second grant, so long as their business has been adversely affected since 14‌‌ July 2020.  This typically means that their business has experienced lower income and / or higher costs because of coronavirus (COVID-19) since 14‌‌ July. There is no minimum threshold over which a business’s income, costs or activity need to have changed by, but your clients will be asked to keep appropriate records as evidence of how their business has been adversely affected.

The second taxable grant is 10% less than the first being worth 70% of average monthly trading profits. This will be paid out in a single instalment and will be based on three months’ worth of trading profits and capped at a maximum of £6,570. 

Self-employed parents whose income may have been affected if they took time out to have children will also now be able to claim if they meet the eligibility criteria. There’s more information for new parents, including an online form on GOV‌.UK

Once you have completed a claim, you will receive payment within 6 working days.

If you need help please do not hesitate to contact me. I mainly cover King’s Lynn, Swaffham, Downham Market, Fakenham and North Norfolk and with some clients further afield