VAT Pro Bono Success for Max Schofield: HMRC withdraw from appeal

2nd December 2022

Max Schofield (pictured here) was representing Amanda Frolich (trading as Amanda’s Action Club) in her appeal in the First Tier Tribunal (Tax) on a pro bono basis. The case concerned the “private tuition exemption” in Item 2 of Group 6 in Schedule 9 of the VAT Act 1994.

Amanda’s Action Club runs lessons for young children and children with SEND in accordance with the Early Years Foundation Stage (EYFS) introduced under the Childcare Act 2006, replacing the former national curriculum for the foundation stage.

HMRC issued a decision and historic assessments on the basis of failure to register for VAT. They believed the supplies did not fall under the education exemption for “The supply of private tuition, in a subject ordinarily taught in a school or university, by an individual teacher acting independently of an employer”.

Days before the hearing, which was listed in the Tax Tribunal, on the date of exchange of skeleton arguments, HMRC formally withdrew their opposition to the appeal, cancelling the VAT assessments.

Furthermore, in accordance with the new s.194A of the Legal Services Act 2007, in effect from 28 June 2022, HMRC consented to a pro bono costs order. The money will be donated to the Access to Justice Foundation charity which supports access to justice by way of grants to agencies providing free legal advice.

Max was helpfully assisted by Tax Litigator Hannilee Fish, acting in a personal capacity on a pro bono basis also.

Max Schofield is a specialist indirect tax barrister. He has been instructed to advise and appear on a broad range of tax cases concerning VAT, SDLT, Customs and Excise Duties. Max is ranked in both independent legal directories: Chambers and Partners, and the Legal 500.

To instruct Max, please contact his clerk, Practice Director Dave Fielder on [email protected] or by calling him on 020 7583 8055.