This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6483283.stm

The article has changed 4 times. There is an RSS feed of changes available.

Version 1 Version 2
Lap dance tax case at High Court Lap dancing club wins tax appeal
(about 3 hours later)
A decision on whether lap dancers have to pay VAT is due from the High Court. Spearmint Rhino has won its High Court appeal against a ruling that it has to pay VAT on the earnings of its dancers.
The owners of the Spearmint Rhino "gentleman's clubs" are appealing against a decision that the company must pay VAT on dancers' earnings. It means that the lap dancers must pay VAT themselves, although they only have to be VAT registered if they earn more than £60,000 per year.
David Milne QC representing Spearmint Rhino argued that the decision was wrong because it is the dancer and not the club that provides the services. David Milne QC representing Spearmint Rhino argued that the club should not pay because it was the dancer and not the club that provided the services.
Self-employed dancers pay the club to use its facilities and payment is made directly to them by their clients. Self-employed dancers pay to use its facilities and are paid by the clients.
A statement from HM Revenue and Customs said, "HMRC will consider the High Court's decision carefully before deciding what further action to take, including whether to appeal."
Like running an airportLike running an airport
Mr Milne drew a parallel between operators of lap dancing clubs and airports.Mr Milne drew a parallel between operators of lap dancing clubs and airports.
He pointed out that if he were to buy a cup of coffee or a camera from an outlet in the departure lounge at Heathrow, it would be supplied by the retailer and not by the airport's operator, BAA.He pointed out that if he were to buy a cup of coffee or a camera from an outlet in the departure lounge at Heathrow, it would be supplied by the retailer and not by the airport's operator, BAA.
He said that the retailers paid for the "privilege of trading in the lucrative departure area" just as the dancers pay for the use of booths at the clubs.He said that the retailers paid for the "privilege of trading in the lucrative departure area" just as the dancers pay for the use of booths at the clubs.
The appeal says that the original ruling made the mistake of ruling that the dancers were the agents of Spearmint Rhino because of the degree of control the club has over them through their Dance Performance Licences. The original ruling was made on the basis that the dancers were the agents of Spearmint Rhino because of the degree of control the club has over them through their Dance Performance Licences.
The licence requires the dancers to try to maximise sales and entertainment and makes them to pay damages to the club if they miss a session that they have booked.The licence requires the dancers to try to maximise sales and entertainment and makes them to pay damages to the club if they miss a session that they have booked.
They are also subject to a code of conduct governing their contact with the clients.They are also subject to a code of conduct governing their contact with the clients.
Court of Appeal judge Lord Justice Ward described the club's aim in an earlier case as "to tease and not to satisfy".Court of Appeal judge Lord Justice Ward described the club's aim in an earlier case as "to tease and not to satisfy".