A nursery owner is calling for ring-fencing of the tax that nurseries have to pay on Government funding so private settings can reinvest money back into their provision and pass the savings on to parents.
Nursery manager Rachel Jones is also calling for the Government to change the childcare ‘exempt’ category for VAT to zero-rated, which would allow private nurseries to claw back VAT paid out.
The provision of childcare services by registered daycare providers is exempt from VAT. This means that nurseries cannot register for VAT and cannot recover any VAT on any purchases of good and services.
If VAT was zero-rated for childcare providers, as it is in the construction industry, settings could claim back tax for any equipment or resources purchased without having to add VAT to their fees.
Please click here to read this article, published in Nursery World.
