VAT on Pilates in the UK
As a provider of Pilates services in the UK and in Barcelona, Spain, it is essential for me to stay up-to-date with rulings about taxation.
The industry has been waiting for a ruling, and this week that ruling was delivered.
The ruling this week by Tax Judges in the UK means that Pilates will contain to not qualify for VAT exemption.
You must register for VAT if you go over, or you know that you will go over the threshold of £81,000 in a 12-month period.
Some services in the UK are exempt from VAT, but Pilates is not.
If you’re a VAT registered business then you are essentially an unpaid tax collector. You have to add VAT at the appropriate rate to everything you sell (usually at 20%). This additional income isn’t yours – you’re collecting it on behalf of HMRC (HM Revenue & Customs). Every 3 months you need to pay over the VAT you’ve collected to HMRC. There are pros and cons about being registered for VAT. As the Pilates industry mainly deals with clients who are not VAT registered themselves, there are not as many benefits as other business may get.
If your PIlates business is based outside of the UK then VAT will not apply.
You can read more about the ruling by clicking on the link below. The Times is a subscription website. I will post more details of the ruling as soon as I can.
Chris is an international Pilates and functional training presenter and educator based in London and Barcelona, Spain. He is the creator of Pilates EVO©, bodyFUNC©, and CEO of Pilates Rehab Limited and Sport Core Strength. He also created Pilates Carnival and Fitness Carnival, conventions where all profits go to local children’s charities. He organises retreats, fitness holidays and sports holidays in Barcelona. For more information about training with Chris in Barcelona, please click on Barcelona Bienestar. To learn more about Chris, please read Just who is Chris Hunt anyway? You can also subscribe by completing the form on the this BLOG to receive articles and special offers straight to your inbox.
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