Hi,
We advised a client after getting written guidance from HMRC that their supply may be exempt, if it met two conditons. The Limited Company administer and run football coaching and dance classes in deprived areas to try to get them off the streets and stop them using knifes etc.
In late 2010 we emailed the client saying IF the scheme was ' Government approved training' AND funded by one of the organisations listed from HMRC, and provided the list then it would be exempt, if not it would be standard rated.
Client responded saying that it met both of these criteria.
Now if appears it is not an approved training scheme - do we have any liability?
Lorraine
Replies (5)
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Not on the face of it
A real deja vu moment. I had an almost identical case last year with a social enterprise and managed to track down the rules you state on HMRC's website however, because of the many schemes and providers, it took ages to confirm it was outside VAT.
The client provided me with loads of paperwork, grant applications, email/web addresses and other stuff and asked me to come up with an opinion, in your case however if you only got as far as gathering the rules and passing them onto the client and they confirmed it was OK, you had no reason to dig further or ask more questions.
Playing devil's advocate (in hindsight) there may be a question over who was supposed to identify whether a particular scheme was government approved or not but assuming it was the client who applied for and ran it, I'd presume the client was in a better position to judge than you.
I'm a lttle concerned ...
The Limited Company administer and run football coaching and dance classes in deprived areas to try to get them off the streets and stop them using knifes etc
... that you are acting for a company that would consider the use of knives etc on the streets :)