A FITNESS centre for women is undergoing a revamp after securing a £40,000 VAT refund.

Suzanne Brown's Lifespan Ladies Fitness business is investing in equipment at its clubs in Chester-le-Street, County Durham, and Washington, Wearside.

The refurbishment comes after the firm was able to reclaim three years of VAT payments worth £40,000 with the help of Newcastle-based accountants RMT and business advisors.

In a test case, which has opened the way for other businesses to make similar claims, RMT said interest paid by gym members who spread their fees over the year should be exempt from VAT.

Customs and Excise agreed, allowing Lifespan to reclaim the payments from the past three years, with interest.

Ms Brown said: "I wondered if this might be the case, so I decided to get some professional advice. While other accountants simply said it was too difficult to take on the VAT man, RMT was happy to give it a go and they clearly know what they are doing. I am now investing in some new equipment and decoration at the gyms and, despite the run-up to Christmas being a quiet one for this industry, for the first time in ages we will be going into the New Year with a few bob in the business account.

"I am sure this news will be of interest to other businesses which may be paying more VAT than necessary."