HELP please. what box to put grant payments in on vat return

HELP please. what box to put grant payments in...

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Hi,

I am trying to sort out my late fathers final return, In March he was paid a sum of money from the housing executive for completing some grant work.

are payments from grants an input, output sale or purchase? I am a little confused presently at which box to enter the vat in on the return. 

 Thank-you.

Replies (9)

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chips_at_mattersey
By Les Howard
12th Jul 2015 18:46

Grant income

If VAT is due on the grant, that is entered in Box 1. But if the income is non-business, no VAT is payable.  The value is entered in Box 6.

Thanks (1)
Teignmouth
By Paul Scholes
12th Jul 2015 20:31

Not wishing to cause grief

but this can be a tricky subject, so best to be sure.

If the money is a pure grant then it is outside the scope of VAT and so doesn't appear on the VAT return at all.

If however your Father carried out the work for the housing exec and, in return, received the "grant" then it could well be regarded as VATable income, whether any VAT was mentioned or not.

Thanks (1)
RLI
By lionofludesch
13th Jul 2015 09:40

Unclear

It's not clear to me whether the grant was to the OP's father or to a customer of his, with the OP's father completing the work and getting paid direct from the housing executive.

Thanks (1)
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By hadwll
14th Jul 2015 10:35

Thank-you for the replies.

 

The grant was known as landlords grant for improving houses that were unsatisfactory.

The work was carried out for a customer by my Father. He completed the work and when it was satisfactory the housing executive passed the properties and he received the grant

 

One other thing that I have noticed is that the itemised schedule of works from the housing executive lists the work to be done and the costs, however the vat on the docket is the old rate at 17.5%.

 

To confirm when I am working out the vat due do I work it out at the current 20% or the old 17.5%?

 

Thanks.

 

Thanks (0)
RLI
By lionofludesch
14th Jul 2015 10:59

20%

Afraid it'll be 20%, assuming that the invoice was issued since 4 Jan 2011 - or the work was done since then if there is no invoice.

From your father's point of view, this isn't a "grant", it's just ordinary sales.  The grant was paid to his customer - albeit there's been some shortcutting.

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Replying to tom123:
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By User deleted
14th Jul 2015 13:23

Inclusive?

hadwll wrote:

the final completion of works document just gives the total inclusive vat so I will just work it out 20% of it 

 

If it is inclusive - the VAT element won't be 20%, it will be 16.67% or 20/120

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Teignmouth
By Paul Scholes
14th Jul 2015 11:00

Seeing as VAT is mentioned,

and regardless of who the contract is between, I'd just add 20% VAT (it's not unusual for standard forms to quote out of date VAT and tax rates, although I've not seen purchase tax for a few years now!)

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