Plans to tax five-a-side teams cause outrage

[Steven]

It is impossible to make this stuff up.

http://www.independe...ge-7932627.html

Moves to levy VAT on five-a-side football teams playing on artificial pitches have provoked an angry row within the Government, a leaked letter obtained by The Independent has disclosed.

Hugh Robertson, the Sports Minister, has protested to colleagues that the levy could hit efforts to use the London Olympics to inspire more people to take regular physical exercise.

Under the move, HM Revenue and Customs is demanding VAT at 20 per cent from companies operating all-weather pitches at more than 150 sites in Britain.

Critics say 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.

They argue that the levy, which will collect little more than £5m a year, will hit numbers of people participating in sport and undermine efforts to improve the nation's health.

They are hoping for a Government retreat on the levy following the recent U-turns on the proposed tax hikes on pasties, static caravans and charitable donations.

The critics have gained a powerful ally in Mr Robertson, who has protested to David Gauke, the Treasury Minister, over the "detrimental effect VAT on small-sided football leagues could have on the sport".

In the letter, he echoes the fears of Sport England that the increase will mean that plans to build all-weather pitches could be put on hold – and some existing centres could be forced to close.

Mr Robertson writes: "Sport England has recently reported that small-sided football participation has increased, which is great news, and we want the rates to keep going in this direction, thereby assisting to achieve our Olympic legacy commitment."

He asks if there is "any chance of revisiting this in the future" and adds: "Small-sided football is one of our three greatest participation growth areas. If would be greatly appreciated if HMRC could take a more balanced/lenient view!"

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.

The move has been widely condemned, with the former Tottenham manager Harry Redknapp branding the decision "absolutely disgusting", adding: "We're always being told how hard it is to get kids to switch off their computer games and play in the fresh air – yet this makes it a bit harder to do that."

In a letter to the Prime Minister, Barry Hunter, the chief executive officer of the PlayFootball chain of small-sided football centres, said: "Reduced access to facilities will undoubtedly be a barrier to playing and keeping fit.

"With the Government's current emphasis on maintaining an active and healthy way of life, it would seem counterproductive to tax such a popular grassroots sport."

MPs of all parties said in a Commons motion last year: "The decision affects schools and communities that are recipients of free access to high-quality football facilities provided by operators of five-a-side football leagues.

"We believe that five-a-side football should be encouraged, particularly as participation in five-a-side football is currently far higher than in 11-a-side football."

An HMRC spokesman said companies that provided access to a football league were not just providing pitches and were therefore liable to VAT.

He said they are also supplying other services, such as arranging fixtures, opposing teams, referees, publishing scores and league tables and awarding trophies.

[Fox92]

Ridiculous. It's getting worse honestly, just want to take every little ££ from every possible direction.

Never have the lyrics to 'Taxman' by The Beatles been so true.

[Darkon84]

We all pay £5 per week anyway, which covers the cost of the match, then the leftover goes in to a kitty for a big piss up further down the line, woo! so not too fussed. Though its still a complete piss take, trying to pinch every last penny from peoples pockets. As mentioned in the article, people are supposed to be being encouraged to get out and excersize, yet ridiculous schemes like this will only serve to do the opposite and scare people away.

I can see midnight, 'underground' 5-a-side leagues being discussed and created as we speak

[Captain...]

FFS, this is just ridiculous, is this really how they are going to tackle the economic crisis?

Piffling little taxes, again targeting the working class, is this how they are going to recoup the money from the Fuel levy U-turn?

Just pathetic incompetent clueless twats the lot of them.

[Captain...]

We all pay £5 per week anyway, which covers the cost of the match, then the leftover goes in to a kitty for a big piss up further down the line, woo! so not too fussed. Though its still a complete piss take, trying to pinch every last penny from peoples pockets. As mentioned in the article, people are supposed to be being encouraged to get out and excersize, yet ridiculous schemes like this will only serve to do the opposite and scare people away.

I can see midnight, 'underground' 5-a-side leagues being discussed and created as we speak

Or people will just get together and play down the park, and a few small businesses will go bust, to be honest I think they massively overcharge for the services they provide anyway.

[purpleronnie]

Its almost like the government want us to fail at sports, just compare our facilities to the dutch...its incredible we have any sucess at sports at all.

[ADK]

I remember after the last Tory lot, i think we won just 1 gold medal at the 1996 olympics.

[Jace]

Who actually voted for this Tory bullshit?

[davieG]

It'll probably cost £5mill to collect this tax.

[Benji]

Someone much cleverer than me will probably correct me, but isn't HMRC a non-ministeral department? So while technically part of the Government, it's not like this is some tory policy, it's HMRC saying this money is taxable.

[21st Century Fox]

I saw this a while ago, just throw this on the pile with the VAT rise on Sports Nutrition Supplements. It's not like we've got an above average obesity rate in the U.K.

[davieG]

Someone much cleverer than me will probably correct me, but isn't HMRC a non-ministeral department? So while technically part of the Government, it's not like this is some tory policy, it's HMRC saying this money is taxable.

The government or more likely Europe decides what must have and need not have VAT value hence Zero VAT on most foods (including pasties), children's clothes etc.

When I owned a hardware shop and sold rabbit food I was instructed by the VAT Inspector to ask the purchasers whether the rabbits were pets or being bred to be eaten as one sale was VAT rated and the other was Zero rated, lots of Mums weren't very happy when I asked their kids this question.

[Voll Blau]

Its almost like the government want us to fail at sports, just compare our facilities to the dutch...its incredible we have any sucess at sports at all.

Sadly much of our success is down to the fact private schools like those Cameron et al attended have good facilities and coaches, while the vast majority of use who went through the state system had no such luxuries.

This is particularly notable in sports like cricket where a stupidly high proportion of professional players were educated outside the state system.

Funnily enough there was a column on this very subject by Mark Steel in The Independent today.

http://www.independent.co.uk/opinion/commentators/mark-steel/mark-steel-sport-for-all-who-can-afford-it-7932581.html

[Trav Le Bleu]

The government or more likely Europe decides what must have and need not have VAT value hence Zero VAT on most foods (including pasties), children's clothes etc.

When I owned a hardware shop and sold rabbit food I was instructed by the VAT Inspector to ask the purchasers whether the rabbits were pets or being bred to be eaten as one sale was VAT rated and the other was Zero rated, lots of Mums weren't very happy when I asked their kids this question.

So if you buy a bunny whilst licking your lips and patting your tummy, you will get it cheaper? (Assuming you don't ask them to warm it up.)

[davieG]

So if you buy a bunny whilst licking your lips and patting your tummy, you will get it cheaper? (Assuming you don't ask them to warm it up.)

Something like that there were quite a few weird anomalies re what was zero rated, annoyingly we were pretty naive and dare I say it far too honest, probably why we failed as our turnover took us a few £s over the VAT cut off point where you have to pay the VAT collected to the VAT man.

Paid VAT and made no profit.