Wednesday, July 11, 2012
Kerfarkingching - Nanny Taxes Five-aside
As loyal readers know, Nanny has something of a bee in her bonnet about us being fit and healthy (she needs a fit and healthy workforce so that she can levy taxes to pay for her expenses and mechanisms of state monitoring and control). Therefore she is often exhorting adults and kids to play sport.
However, as loyal readers also know, Nanny is a hypocrite who is desperately short of cash.
Therefore it should come as no surprise to learn that Nanny's chums in HMRC are trying to tax five aside football teams.
The Independent reports that HMRC is trying to levy VAT at 20% from companies operating all-weather pitches at more than 150 sites in Britain.
The levy will add about £1 to the typical £4.50 cost of playing in a five-, six- or seven-a-side match – or £100 a year for adults who play twice a week.
Critics of the scheme (including Nanny's own Sports Minister, Hugh Robertson) argue that the levy, which will collect £5M a year, will hit people participating in sport and undermine efforts to improve the nation's health.
For more than 20 years, five-a-side centres have not attracted VAT because their operators believed they were only supplying the land to sports teams. However, the HMRC has ruled that their use should be subject to tax because the players that use them are hiring pitches from commercial concerns that are also organising mini-leagues. It said that such businesses should always have been subject to tax.
More than 500,000 children are estimated to use such facilities free every week, with the number expected to double within a decade.
Ker Farking Ching!
Visit The Orifice of Government Commerce and buy a collector's item.
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