A JAW-DROPPING £12,000 bill from the taxman has landed on the doorstep of a Lancaster charity after it renovated a children's play-ground.

Fairfield Association members may have to empty their own pockets to foot the bill after raising more than £200,000 to transform a dilapidated play area into a fun haven for kids.

The charity unveiled the project in April- thanks to an £81,000 Lottery grant - but it was marred when the tax bill was received last week.

The association says it was told by Customs and Excise earlier in the project that because it would not be charging for use of the facilities there would be no VAT.

But Customs and Excise say this is not the case and that no play equipment qualifies for tax relief.

Spokesman Phil Rogers told the Citizen: "The group should have included VAT in the costs when they were putting the bid together, but there is an issue with the advice they received and we have asked them to write to us explaining, which they have done."

He says the issue is currently being looked into.

Fairfield Association chairman Jules Coleman says: "The pro-ject will now be overspent by £12,000 - money that the charity does not have.

"We were stunned at the news, coming right at the last minute and just as the new play area is open for use. How can they charge tax on facilities for children, paid for by lottery and Government money and run by a charitable organisation?

He goes on: "We had sought advice in good faith, and had then spent all the money on new equipment for the children. It is appalling that they can change their minds like this so late in the day, when there appears to be nothing we can do about it."

The Fairfield organisation was set up in 1996 as an charity with the aim of conserving and enhancing green space in the area and has undertaken a number of projects.