Tag Archives: king’s lynn

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

Are You Paying Too much Tax?

According to a recent survey of 500 musicians and bands by Pirate (pirate.com) 40% of artists are paying too much tax.

Money spent which is a legal claimable as an expense is simply not being declared. This is because they do not understand tax law.

Only 30% of artists have professional help from a bookkeeper or accountant in preparing their tax returns. 26% of artists surveyed said that they worry about money on a daily basis.

If you’re not sure about UK tax law I can help you Services Overview – www.barnowl-bookkeeping.co.uk

PIRATE.COM – Studios for musicians, podcasters & dancers

Barnowl Bookkeeping are based near King’s Lynn in Norfolk within easy reach of Wisbech, Downham Market and Swaffham. We take pride in keeping your business compliant and prevent you from paying too much tax.

When is Your Hobby a Self-Employed Business ?

Has my hobby become a self-employed job? Its one of those thorny questions. For example you love dogs, you have several and you breed from them. At what point does HMRC decide that the money you make from your hobby is taxable? At what point i.e. does it become part-time self-employed job?

HMRC have a business test made up of six questions–

Below is the business test guidance in brief. The main words from the HMRC guidance are in bold with my comments in brackets after relating the guidance t oa dog breeder as an example. To see the guidance in full follow this link : httpsss://www.gov.uk/hmrc-internal-manuals/vat-business-non-business/vbnb22000

Is the activity a serious undertaking earnestly pursued? (Do you carry out the activity for business or purely for enjoyment? Do you want to make money from selling puppies or are you more concerned with letting them go at cost to a really good home?)

2. Is the activity an occupation or function, which is actively pursued with reasonable or recognisable continuity? (Are there efforts to ensure that puppy sales are made regularly? Are you getting all your bitches pregnant as often as reasonably possible?)

3. Does the activity have a certain measure of substance in terms of the value of supplies? (Is the amount of money you intend to generate from the activity generates enough to be deemed to be business. If you only generate a hundred pounds a year from selling puppies its unlikely to be a business activity)

4. Is the activity conducted in a regular manner on sound and recognised business principles? (Are you advertising or putting the word around that you sell puppies? Are you decisions about your dogs based purely for your dogs as pets or are they influenced by commercial needs? If you are thinking in a businesslike way then you are more likely to be a business.)

5. Is the activity predominantly concerned with the making of taxable supplies for a consideration? (If it is your intention to make money by selling puppies it is more likely to be a business.)

6. Are the taxable supplies that are being made of a kind which, subject to difference of details, are commonly made by those who seek to profit from them? Someone who claims to be part of a known trade or occupation is likely to be in business. Someone who claims to be in business doing something completely improbable and unique is less likely to be in business. (Dog breeding does exist as a business and if your aim is to make a profit and to earn a living it is more likely to be business.)

If you want to be self-employed or need help with your existing business please contact me, I’m Jo from Barnowl Bookkeeping www.barnowl-bookkeeping.co.uk .The services I offer are Bookkeeping, CIS, VAT, Payroll and Self Assessments for the Self-Employed my specialisms are in Hospitality, Construction and Manufacturing industries. Based near King’s Lynn I am close to Downham Market, Wisbech and Swaffham to the South. To the North and East I serve the North Norfolk Coast and Fakenham areas.