VAT on Children’s Face Masks

HMRC have revised their policy on the VAT treatment of children’s face masks and now accept that they are items of children’s clothing.

What does this mean for VAT?

As a result, face masks which are designed and held out for sale as being suitable for children under the age of 14 qualify for VAT relief and the zero rate of VAT can be applied with immediate effect.

If, in the past, you have sold face masks which qualify for zero rating as children’s clothing you can make a claim to HMRC for overpaid VAT.

• Read more: What is VAT? Complete guide

How to find additional information

HMRC provide further information in Revenue & Customs Brief 11 (2022) including a warning regarding the imposition of penalties if reasonable care is not taken when calculating the overpaid VAT. Taking professional advice is one way of demonstrating reasonable care and the VAT team at Shorts will be happy to advise on, and assist with, a claim to HMRC to minimise the risk of a penalty.

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VAT least understood of all taxes in the UK, despite being one of the most widely paid. The VAT rules affect every individual, company, or partnership to some extent. This makes a good understanding of VAT essential. There are several potential pitfalls facing VAT registered businesses if proper VAT planning isn't in place.

The good news is there is plenty of support available to help companies navigate their VAT situation. VAT errors can come in all shapes and sizes, but they can usually be fixed on the next VAT return that is submitted.

Our dedicated VAT team is happy to review your last VAT return, free of charge, and to reduce the risk of any penalties or problems.

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