Summary

This was an appeal against the First-tier Tribunal (FTT) decision that the appellant's supplies were exempt from VAT on the basis that they were supplies of 'welfare services' to children under Item 9, Group 7, Schedule 9 of the Value Added Tax Act 1994 because those services were directly connected with the care or protection of children.

Background

The appellant runs a residential assessment centre where the parenting capabilities of parents who are referred to it by local authority social workers are assessed. The social worker refers a family unit where there are concerns over whether the parents can care for the child safely and adequately or, because of lack of engagement, the social worker has been unable to evaluate whether there is a risk. The average placement lasts for 12 weeks. The families are accommodated on site in a 'typical family home'. The appellant's support