The decision on whether VAT is added to your booking is something that is defined by HMRC, and for this reason, we’re unable to offer advice on this, but what we are able to do is define the 3 principles upon which the decision is based on.
We will however make you aware during the initial booking process if your booking hire will have VAT added, so there shouldn’t be a shock when you receive your first invoice. It is important to keep in mind, if you do make any changes to your bookings that do not meet the VAT exempt criteria outlined below, you may be charged VAT on future invoices.
Principle 1: Has the School ‘Opted to Tax’ its buildings?
- Currently, only Amersham School has Opted to Tax. (If you’re hiring another school you can move straight to principle 2).
- At a School that has Opted to Tax, all lettings and administration fees related to bookings are subject to standard-rated VAT (currently 20% on top of the fee).
- In this case, principles 2 and 3 do not apply as there are no exemptions.
Principle 2: What facility is being used?
- If the facility you’re hiring is a sporting facility or a car park then these are subjected to VAT (exceptions apply, move onto principle 3).
- If you’re hiring another type of facility (such as a classroom) then you will not have VAT added and you do not need to consider principle 3.
Principle 3: What type of booking is it?
- Principle 3 is only relevant to bookings using sporting facilities or car parks
- As standard, you should have VAT added to the booking, but there are exceptions as listed below;
- Car Park
- If you are hiring the car park as part of the use of another facility, no VAT is added
- If you are hiring the car park exclusively to run a market or car boot sale, no VAT is added
- Sporting facility
- If you are hiring the sporting facility and you’re using it for non-sporting reasons (such as to hold an arts and crafts childcare activity), no VAT is added.
- If you let out sports and physical recreation facilities for a series of sessions, when you meet all the following conditions:
- The series consists of 10 sessions or more
- Each session is for the same sport or activity
- Each session is in the same place (however swapping from 1 half of a sports hall, to the other; or using a different third of an astro turf is still permitted)
- The interval between each session is at least 1 day but not more than 14 days (for an interval to be at least 1 day, 24 hours must elapse between the start of each session). The duration of the sessions may be varied. There is no exception for intervals greater than 14 days through the closure of the facility for any reason (such as the Christmas period).
- The series is to be paid for as a whole and/or there is written evidence to the fact.
- The facilities are let out to a school, club, association or an organisation representing affiliated clubs or constituent associations, such as a local league. I.e. not an individual
- The organisation that the facilities are let to has exclusive use of them during the sessions.
- If your booking does not fall into any of the above exemptions then ‘the supply’ (i.e. each booking) is subject to standard-rated VAT.
Important things to note:
- VAT exemptions apply only when all conditions are being met, if you change your booking which means one or more conditions are no longer met (this includes a planned cancellation in sessions) then the series of sessions will then be subjected to VAT.
- To avoid having VAT added, we suggest that you block book sessions in groups of 10+ sessions at a time, planning ahead to work around holidays such as Christmas and Easter.
- If you do need to take a two-week break in your session bookings (and this means that you become subject to VAT) then we suggest you make them into two separate bookings of 10+ sessions at a time