Readers' forum : A need to sweat?

I need to clarify a VAT issue on behalf of a charity client which trades as a leisure centre. The centre is not VAT-registered because income from vending machines and the cafe is less than the registration threshold and all other income is exempt because it is linked to the use of the sporting facilities.

However one issue concerns me: if a customer wants a swimming session they pay £5 but if they want to use the sauna and steam room as well they will pay £11.

My client treats the payment of £11 as exempt from VAT on the basis that swimming is the customer’s main priority. It is not possible for a customer to just use the sauna and steam room but not the swimming pool because it is next to it.

Can all these payments of £11 be treated as exempt – in other...