1. Helping Unions Make Entertainments Make Money VATangles LLP

2. Objectives

3. No VAT on ticket sales

4. Objectives No VAT on ticket sales No VAT on cloaks income

5. Objectives No VAT on ticket sales No VAT on cloaks income No VAT on bar sales

6. Objectives No VAT on ticket sales No VAT on cloaks income No VAT on bar sales To minimise the loss of irrecoverable VAT on purchases re: the above

7. Who are VATangles LLP?

8. VAT consultants specialising in: – Educational bodies

9. Who are VATangles LLP? VAT consultants specialising in: – Educational bodies – Students Unions

10. Who are VATangles LLP? VAT consultants specialising in: – Educational bodies – Students Unions – Charities and their subsidiaries

11. Who are VATangles LLP? VAT consultants specialising in: – Educational bodies – Students Unions – Charities and their subsidiaries – Healthcare institutions

12. Who am I?

13. Noel Tyler

14. Who am I? Noel Tyler First VAT Consultant to work with Students Unions – since 1991

15. Who am I? Noel Tyler First VAT Consultant to work with Students Unions – since 1991 Worked with Loughborough since 1993

16. Who am I? Noel Tyler First VAT Consultant to work with Students Unions – since 1991 Worked with Loughborough since 1993 Currently act for approximately 12 Students Unions

17. Who am I? Noel Tyler First VAT Consultant to work with Students Unions – since 1991 Worked with Loughborough since 1993 Currently act for approximately 12 Students Unions Spend approx. 75% of my working life in or with Students Unions

18. Who am I? Noel Tyler First VAT Consultant to work with Students Unions – since 1991 Worked with Loughborough since 1993 Currently act for approximately 12 Students Unions Spend approx. 75% of my working life in or with Students Unions Saved > £5 million for Students Unions

19. The Beginning

20. 1990 – New VAT Directive

21. The Beginning 1990 – New VAT Directive – Financial sector

22. The Beginning 1990 – New VAT Directive – Financial sector – Sports clubs

23. The Beginning 1990 – New VAT Directive – Financial sector – Sports clubs – Cultural services

24. The Beginning 1990 – New VAT Directive – Financial sector – Sports clubs – Cultural services – Exemptions for charities

25. The Beginning 1990 – New VAT Directive – Financial sector – Sports clubs – Cultural services – Exemptions for charities I wrote lead article on

26. The Beginning 1990 – New VAT Directive – Financial sector – Sports clubs – Cultural services – Exemptions for charities I wrote lead article on – Financial sector

27. VAT and Entertainments - Historically

28. Everything subject to VAT;

29. VAT and Entertainments - Historically Everything subject to VAT; However !!!!!

30. VAT and Entertainments - Historically Everything subject to VAT; However !!!!! 1996 – Cheltenham & Gloucester College of Higher Education Students Union

31. VAT and Entertainments - Historically Everything subject to VAT; However !!!!! 1996 – Cheltenham & Gloucester College of Higher Education Students Union Re: Graduation Balls and Freshers Balls

32. More Recently

33. 2003 – Hull Truck Theatre

34. More Recently 2003 – Hull Truck Theatre HMC & E claimed VAT exemption re: Cultural Services

35. More Recently 2003 – Hull Truck Theatre HMC & E claimed VAT exemption re: Cultural Services Would have cost theatre >£2million in VAT on construction and fitting out

36. More Recently 2003 – Hull Truck Theatre HMC & E claimed VAT exemption re: Cultural Services Would have cost theatre >£2million in VAT on construction and fitting out Why not for Students Unions?

37. VAT and Cultural Services

38. Article 132(1)(n) of the Principal VAT Directive

39. VAT and Cultural Services Article 132(1)(n) of the Principal VAT Directive Item 2(b) of Group 13 of Schedule 9 to the Value Added Tax Act 1994

40. VAT and Cultural Services Article 132(1)(n) of the Principal VAT Directive Item 2(b) of Group 13 of Schedule 9 to the Value Added Tax Act 1994 – Exempts from VAT The supply by an eligible body of a right of admission to a theatrical, musical or choreographic event of a cultural nature.

41. VAT and Cultural Services Eligible Body

42. VAT and Cultural Services Eligible Body – is precluded from distributing, and does not distribute, any profit it makes;

43. VAT and Cultural Services Eligible Body – is precluded from distributing, and does not distribute, any profit it makes; – applies any profits made to the continuance or improvement of the facilities made available by means of the supply

44. VAT and Cultural Services Eligible Body – is precluded from distributing, and does not distribute, any profit it makes; – applies any profits made to the continuance or improvement of the facilities made available by means of the supply; and – is managed and administered on an essentially voluntary basis by persons who have no direct or indirect interest in its activities.

45. VAT and Cultural Services VAT saved on ticket salesYES

46. VAT and Cultural Services VAT saved on ticket salesYES VAT saved on cloaks incomeNO

47. VAT and Cultural Services VAT saved on ticket salesYES VAT saved on cloaks incomeNO VAT saved on bar salesNO

48. VAT and Cultural Services Still being fought for a number of Unions

49. VAT and Cultural Services Still being fought for a number of Unions Unarguable going forward now due to change of governance under Charities Act 2006

50. VAT and Cultural Services Still being fought for a number of Unions Unarguable going forward now due to change of governance under Charities Act 2006 However!!!!!

51. VAT and Fundraising Activities

52. Students Unions are charitable bodies – always were

53. VAT and Fundraising Activities Students Unions are charitable bodies – always were Therefore should be entitled to charity VAT exemptions

54. VAT and Fundraising Activities Students Unions are charitable bodies – always were Therefore should be entitled to charity VAT exemptions Also available to wholly owned subsidiaries of charitable bodies

55. Fundraising Activities VAT Exemptions Include Bar Sales!!!

56. VAT and Fundraising Activities VAT saved on ticket salesYES

57. VAT and Fundraising Activities VAT saved on ticket salesYES VAT saved on cloaks incomeYES

58. VAT and Fundraising Activities VAT saved on ticket salesYES VAT saved on cloaks incomeYES VAT saved on bar salesYES

59. VAT and Fundraising Activities EU Law – Article 131(1)(o) – Principle VAT Directive

60. VAT and Fundraising Activities EU Law – Article 131(1)(o) – Principle VAT Directive – Exempts from VAT The supply of goods or services by [charitable bodies] in connection with fund raising events organised exclusively for their own benefit.

61. VAT and Fundraising Activities Article 13A(1) continues – Member States may introduce any necessary restrictions in particular as regards the number of events or the amount of receipts which give rise to the exemption.

62. VAT and Fundraising Activities Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT

63. VAT and Fundraising Activities Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT The supply of goods and services by a charity in connection with an event –

64. VAT and Fundraising Activities Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT The supply of goods and services by a charity in connection with an event – – (a) that is organised by that charity, or jointly by more than one charity; and

65. VAT and Fundraising Activities Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT The supply of goods and services by a charity in connection with an event – – (a) that is organised by that charity, or jointly by more than one charity; and – (b) whose primary purpose is the raising of money; and

66. VAT and Fundraising Activities Item 1 of Group 12 of Schedule 9 to the Value Added Tax Act 1994 exempts from VAT The supply of goods and services by a charity in connection with an event – – (a) that is organised by that charity, or jointly by more than one charity; and – (b) whose primary purpose is the raising of money; and – (c) that is promoted as being primarily for the raising of money.

67. VAT and Fundraising Activities Note 4 to Group 12

68. VAT and Fundraising Activities Note 4 to Group 12 Exemption applies to up to and including fifteen events of a type in a location in a financial year

69. VAT and Fundraising Activities Note 4 to Group 12 Exemption applies to up to and including fifteen events of a type in a location in a financial year Where more than fifteen event are help of a type in a location all become subject to VAT

70. VAT and Fundraising Activities Note 4 to Group 12 Exemption applies to up to and including fifteen events of a type in a location in a financial year Where more than fifteen event are help of a type in a location all become subject to VAT Fifteen events of a type in a location does not include events of a type where the total funds raised in a week come to <£1,000

71. Primary Purpose

72. – Not a requirement of EU law - merely an important purpose – Newsvendors Benevolent Institution

73. Primary Purpose – Not a requirement of EU law - merely an important purpose – Newsvendors Benevolent Institution – Possible arguments re: Graduation Balls and Freshers Balls

74. Primary Purpose – Not a requirement of EU law - merely an important purpose – Newsvendors Benevolent Institution – Possible arguments re: Graduation Balls and Freshers Balls – Otherwise must be with the purposer

75. Primary Purpose – Not a requirement of EU law - merely an important purpose – Newsvendors Benevolent Institution – Possible arguments re: Graduation Balls and Freshers Balls – Otherwise must be with the purposer – What other primary purpose can there be

76. Primary Purpose HMRC can only substitute statement of primary purpose where:

77. Primary Purpose HMRC can only substitute statement of primary purpose where: – They can show purposer is not telling the truth

78. Primary Purpose HMRC can only substitute statement of primary purpose where: – They can show purposer is not telling the truth; or – They can show purposer is confused;

79. Primary Purpose HMRC can only substitute statement of primary purpose where: – They can show purposer is not telling the truth; or – They can show purposer is confused; or – Purposer is truthful but no other reasonable businessman put in the same conditions would have made the same decision

80. Promoted as Primary Purpose

81. Again not an EU law requirement

82. Promoted as Primary Purpose Again not an EU law requirement HMRC guidelines suggested strapline etc. – This event is raising funds for ***** Students Union, or This is a **** Students Union fundraiser

83. Promoted as Primary Purpose Again not an EU law requirement HMRC guidelines suggested strapline etc. – This event is raising funds for ***** Students Union, or This is a **** Students Union fundraiser To appear on posters, flyers and tickets

84. Promoted as Primary Purpose Again not an EU law requirement HMRC guidelines suggested strapline etc. – This event is raising funds for ***** Students Union, or This is a **** Students Union fundraiser To appear on posters, flyers and tickets Also possibly minuted in Trustees minutes, pop-up banners etc.

85. Promoted as Primary Purpose Again not an EU law requirement HMRC guidelines suggested strapline etc. – This event is raising funds for ***** Students Union, or This is a **** Students Union fundraiser To appear on posters, flyers and tickets Also possibly minuted in Trustees minutes, pop- up banners etc. Suggested minuted meetings but these are not requirements

86. Fifteen Events of a Type

87. Types can include, for example, live acts, DJs, balls, parties, comedy, karaoke, quiz, magicians, conferences

88. Fifteen Events of a Type Types can include, for example, live acts, DJs, balls, parties, comedy, karaoke, quiz, magicians, conferences One Union – Over 50 separate qualifying events per annum

89. Fifteen Events of a Type Types can include, for example, live acts, DJs, balls, parties, comedy, karaoke, quiz, magicians, conferences One Union – Over 50 separate qualifying events per annum Events must have their Oxford English Dictionary definition – Blaydon Rugby Football Club

90. In a Location

91. University Campus to be safe

92. In a Location University Campus to be safe; however May be individual buildings or even rooms

93. In a Location University Campus to be safe; however May be individual buildings or even rooms Compass Catering

94. Where are HMRC on this?

95. They dont like it, but cant decide why

96. Where are HMRC on this? They dont like it, but cant decide why About as static as Bambi on Ice!

97. Where are HMRC on this? They dont like it, but cant decide why About as static as Bambi on Ice! Latest – constitutions require Unions to provide social, cultural, sporting and recreational activities

98. Where are HMRC on this? They dont like it, but cant decide why About as static as Bambi on Ice! Latest – constitutions require Unions to provide social, cultural, sporting and recreational activities Also – events of a regular basis??

99. Where are HMRC on this? They dont like it, but cant decide why About as static as Bambi on Ice! Latest – constitutions require Unions to provide social, cultural, sporting and recreational activities Also – events of a regular basis?? Requirement to minute intention?

100. How do we go forward?

101. Unions position is overwhelmingly strong and correct – Mr John Tallon QC

102. How do we go forward? Unions position is overwhelmingly strong and correct – Mr John Tallon QC HMRC will throw in the towel if they lose the primary purpose test

103. How do we go forward? Unions position is overwhelmingly strong and correct – Mr John Tallon QC HMRC will throw in the towel if they lose the primary purpose test Potential savings here are substantial

104. How do we go forward? Unions position is overwhelmingly strong and correct – Mr John Tallon QC HMRC will throw in the towel if they lose the primary purpose test Potential savings here are substantial Truly nothing to lose

105. How do we go forward? Unions position is overwhelmingly strong and correct – Mr John Tallon QC HMRC will throw in the towel if they lose the primary purpose test Potential savings here are substantial Truly nothing to lose Join me in the battle!

106. Any questions?

107. Thank you for listening