The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the conditions that must be satisfied before supplies of young children’s clothing can be zero-rated.
All of the following conditions must be satisfied before the supply can be zero-rated.
must be an article of clothing or footwear
must not be made of any fur (although there are exceptions)
must be designed to be worn by young children, and
must only be suitable for wearing by young children
Further information on all of these requirements are provided below.
An article of clothing includes the obvious items, such as shirts, skirts, trainers, etc. However it also includes certain safety items, including sailors lifejackets etc, if they have some function and form as clothing.
Articles of clothing do not include accessories, haberdashery items sold separately or safety accessories that are not items of clothing. For example:
buoyancy aids and reflective armbands
buckles, buttons, zips and other types of fastening
sew on items, patches, badges and iron-on items, etc
ear and hand muffs
Baby clothing can often cause confusion as it is possible to zero rate the following items providing they are held out for sale correctly (this list is not exhaustive):
bibs including plastic bibs with built in trays
hooded pushchair rain covers that can be worn by the baby as a rain cape
disposable / re-usable nappies and nappy liners
padded sleeping garments that are shaped at the neck and armholes or have sleeves and / or legs, and
towelling bathrobes that have a hood or sleeves that enable the baby to be wrapped in the garment
HMRC has stated that the following items cannot be zero-rated as baby clothing (this list is not exhaustive):
hooded pushchair covers that are not designed to be used as a baby rain cape
disposable nappy material that is supplied on a roll and not already cut out
mother and baby shawls that can be used by both individuals
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
This guidance note explains how to calculate the amount of tax that arises under the lifetime charge. In general terms the lifetime charge will apply to individuals who transfer property into a trust that is subject to the relevant property regime. See the Chargeable transfers and Occasions of
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.