Lap Dancing VAT Tax
Published / Last Updated on 17/02/2017
Lap Dancing VAT.
A little bit of fun for Friday.
Last week, HMRC won a case to charge a group of Gentlemens’ clubs VAT on services.
The club worked on the basis of selling clients 'lap dancing' vouchers when they entered the club. Clients then gave vouchers to people dancing for them.
The dancers, who were all self-employed, then redeemed those vouchers with a 20% charge for cashing in the vouchers with the club.
HMRC won its case with the Court of Appeal ruling that the income the clubs receive from the 20% fee for ‘cashing in’ the vouchers was income and therefore chargeable to tax.
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