VAT specialist Tony Trotman of Trotman Associates Ltd will be acting on behalf of K&L Childcare Services Ltd, based in Leamington Spa.
HM Customs and Excise has confirmed that K&L is liable for VAT but, says Mr Trotman, 'Some agencies are being told that they are liable and others that they aren't.'
At the tribunal, to be held in Birmingham, he will argue that all childcare agencies should be treated equally and in the same way as other care sector agencies.
Customs and Excise has ruled that care agencies, such as those providing staff for the care of the elderly, are VAT exempt because they are providing 'a welfare service', not merely staff.
Mr Trotman will argue that childcare agencies are offering a service 'that is tantamount to a welfare service' and should also be free of any VAT liability.
He will also call on childcare agencies to be registered, as is the case in Scotland, where registration secures them an automatic exemption from having to pay VAT.
At present, liable agencies, such as K&L, pass their VAT costs on to childcare providers, who in turn pass their costs on to parents in the form of higher fees. At no point in this chain can the VAT be reclaimed.
Lesley Stanley, who co-owns K&L with Kay Webb, said, 'There are vast inconsistencies and it's time we got it sorted out, and in favour of agency staff pay not being liable, as we see the VAT as a hidden tax on childcare that many parents will not be aware of but that they may have to pay.'
Mr Trotman said, 'I'm fairly optimistic that we'll win. I think that we've got a very good case.'
If they win the case, Customs would be obliged to repay any VAT paid by childcare agencies over the past three years.