News

Change to VAT rating for private nurseries rallies support

A nursery owner has launched a campaign for private daycare settings to be able to register as zero VAT rated, which would enable them to claim back the taxes that they pay on goods and services.

Sian Lewis-Evans, owner of Gingerbread Day Nurseries in Stoke Hammond, Buckinghamshire, has published a petition on the 10 Downing Street website, which at the time of going to press had attracted 58 signatures.

Registered childcare settings are exempt from VAT, which means that they cannot charge it or claim it back on any goods or services that they purchase.

But maintained nurseries and schools are also exempt from VAT but are usually able to claim back the taxes paid on goods and services via their local authority, under section 33 of the 1994 VAT Act.

Ms Lewis-Evans told Nursery World, 'I am losing around £15,000 per year to VAT and my setting is only small. If we were able to reinvest this money into our setting it would benefit both children and staff, as we would be able to offer more training and purchase more resources.'

Register now to continue reading

Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:

What's included

  • Free access to 4 subscriber-only articles per month

  • Unlimited access to news and opinion

  • Email newsletter providing activity ideas, best practice and breaking news

Register

Already have an account? Sign in here