Thursday, May 03, 2007

That VAT gets everywhere

News from one of my favourite accountancy firms Grant Thornton.

Lap dancers will be required to pay VAT on their earnings after a judge ruled in favour of Spearmint Rhino at the high court.
The self-styled gentlemen's clubs firm was appealing against a VAT tribunal that said Spearmint Rhino should pick up the tab for tax payments on money earned by dancers.
Mr Justice Mann ruled today however that the services on offer were ultimately provided by the dancers and not the club.
"A member of the public pays £8 for admission and on entering goes into an area in which he or she may drink, socialise, eat and watch partially-clad women dancing on a podium," he said.
"At any one time there are between 20 and 140 young women available to provide the entertainment services in issue in these proceedings.
"The judge went on to say it was a "very forced construction of events" that led to lap dancers being considered as contracted agents for the club.
Customers at Spearmint Rhino clubs in Britain can pay up to £250 for an hour-long one-on-one chat with dancers.

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