VAT charges on a dog walking council licence

greyhound_lady

I am a sole trader working as a professional dog walker. I must hold a Council Commercial dog walkers licence to be permitted to walk in/use the boroughs parks and open spaces. This year, we are all required to pay VAT on top of our fees. This has not been the case in previous years.
This is a significant sum of money for a very small business, particularly when there is no demonstrable evidence from the Council,that our licence fees benefit those of us who hold a licence. I walk in public parks open to all.

Can I ask if they are allowed to charge VAT, and if not why not? If they are permitted ,can I also ask why?. I'm getting no logical explanation from the person I am dealing with at the Council.

Thank you.

comeandgo

HMRC dictate what is VAT able, try asking them.

getmore4less

How much is a dog walking licence that makes VAT a problem?

unforeseen

Providing a licence is a service and attracts VAT.

NOTE: Some licence provision is explicitly exempt such as TV licence.

Brynsam

Which Council are you dealing with? Commercial dog walking licences have always been subject to VAT, so sounds as if they just made a mistake in previous years.

greyhound_lady

I'm licenced by Ealing Council and each licence fee is £175 +VAT. I have a colleague covering walks when needed who I also have to pay a licence fee for,so this year, I've got a £72 extra fee to pay as a result of the VAT.

motorguy

greyhound_lady wrote: »

I'm licenced by Ealing Council and each licence fee is £175 +VAT. I have a colleague covering walks when needed who I also have to pay a licence fee for,so this year, I've got a £72 extra fee to pay as a result of the VAT.

So basically your business costs are up £1.38 a week?

Its HMRC requiring the VAT, not the council.

nick74

greyhound_lady wrote: »

I'm licenced by Ealing Council and each licence fee is £175 +VAT. I have a colleague covering walks when needed who I also have to pay a licence fee for,so this year, I've got a £72 extra fee to pay as a result of the VAT.

Or an alternative way of thinking about it is you received a £70 discount in the previous years when the council mistakenly didn't charge you the VAT.