Jacques Borel's VAT Club fined for late VAT payment

The fine — dated September 2013 in the VAT Club’s accounts — is revealed in a breakdown of expenses incurred by the club, which is campaigning for a lower level of VAT on hospitality, in a briefing document entitled Autumn Estimate 2013.

Borel refused “to go into too many details”, but intimated that the fine related to a VAT payment that was late by just a matter of days.

“We are negotiating,” he added. “We question the amount. It should be sorted out by the end of the year.”

The late payment occurred despite the VAT Club and the separate — but related — entity JB Consultants spending more than £10,000 on accountants and €20,001 (£16,950) on a secretary in the nine months to September.

JB Consultants was also charged penalties of €225 (£191) for late social-security payments in January 2013.

Shortfall​

VAT Club and JB Consultants’ combined expenses have exceeded £350,000 so far this calendar year, compared to VAT Club membership income of just under £250,000 in the period — leaving a shortfall of more than £100,000.

Line items include: office rent of €38,053 (£32,248) for the VAT Club’s headquarters at 29 Champs-Élysées, Paris; £27,260 on Eurostar tickets and hotels; and €823 (£697) on toilets.

Last week the PMA​ revealed Borel was seeking approval for a London office, deputy campaign leader and office manager at an additional cost of more than £200,000 a year, to accelerate the campaign towards its new target of achieving a VAT cut in the 2015 Budget.

Borel’s salary of €13,500 (£11,441) a month has been unpaid since May 2013. He says he has contributed £816,000 of his family’s money to the campaign to date, but warned there is not much more scope for further family contributions.

“I don’t know how much more I will subsidise,” he told the PMA​. “My wife set me a limit of £500,000 and said ‘not a penny more’. But my son convinced her to increase that. Now the faucet is closed. Why should I take the risk on £1m when big companies who stand to gain from the VAT cut refuse to contribute?”

Marathon​

The 43 current, paid-up members of the VAT Club include: twenty-eight of the Independent Family Brewers of Britain; JD Wetherspoon; Heineken; Punch Taverns; and TGI Friday’s. The club advertised in the PMA and other trade press for pubs to participate in Tax Parity Day, and asked for a “contribution of £150 plus VAT towards the campaign”.

Borel has always insisted the campaign to lower VAT for hospitality businesses would be a long and expensive one. “It is like a marathon,” he said. “There are three conditions to obtain a tax cut: time; money; experience.”

The VAT Club steering group was due to meet on Tuesday (8 October) to discuss the campaign strategy.

'Our support cannot be unconditional' read PMA editor Rob Willock's comment on this story.

Selected expenses January to September 2013​
Source: VAT Club Autumn Estimate 2013​

JB Consultants (€)​
Office rent         38,053
Social security    25,629
Expense accounts    6,659
Accounting    5,549
Tax (retirement)    3,295
Photocopying    2,666
Cleaning    2,231
Parking    2,046
Charities    1,000
Toilets    823

VAT Club (£)​
Travel and accommodation    27,260
PR and media advice    25,138
Advertising    23,306
FleishmanHillard    18,249
Penalty for late payment of VAT    9,201
Translator    8,398
Accounting    5,631
Expense accounts    2,363