VAT and accademies
So an academy school teaches GCSEs and gets state funding. Under the old rules it was not making business supplies as it wasn't receiving consideration for the supply (so Sch 9 doesn't even come into it), so it couldn't register or recover VAT.
Now, with the new rules, the supply is still non business, but VAT recovery is allowed on related items (VATA94 33B) despite this. However, in my example the school has to use form VAT126 to make a reclaim, as 33B doesn't change the nature of the supply (i.e. it is still outside scope), thus no VAT registration is possible.
If it offered lessons caught by Sch 9, it would still not be able to register as only exempt supplies would be made.
So only if it offered some sort of service that brought in outside money and wasn't caught by Sch 9 would it be allowed to register (and then would only charge VAT on that one service). I'm thinking... play groups maybe?
That's correct isn't it? I've read all sorts, including Notice 09/11, but just want to be sure what I've read is what it actually says (basically, where no taxable services are made, the academy can't actually register but can still reclaim the VAT on its inputs).
This moment of paranoia has been brought to you by some course notes that say 'recover through VAT return' several times followed by 'academies are unlikely to be able to register for VAT'. D'oh.
- CGT 147 2
- do i have to register new ltd practice as tax agent? 40 1
- international employer please help!! 38 1
- How could I be identified for VAT purposes in UK? 434 9
- Sage payroll alternatives 371 4
- When to include value of import in Box 7 73 1
- employer pension contributions - OMB company 168 2
- Accounts production software license expiry & possible alternatives 315 7
- Capital gain? 97 3
- Are clients getting more stupid? 1,266 21
- Construction Industry Allowable expenses 276 8
- Recharge for private use of a company car 355 8
- vat help for catering concession 281 10
- IHT dilemma 1,160 17
- Tax return software for remote working 239 3
- CGT 339 14
- Problems with Sage 50 Payroll v21(2015) pension module 325 1
- Interest paid to non-UK company - Deduction 113 2
- Compliance check 521 13
- sole trader accountant 805 14
- Auto enrolment excuses 1,088
- Feedback on accounts production software for IFRS 781
- Add T&Cs to Sales Order in Sage 467
- Digita Hosted Software 282
- Call Centre Data Costs 253
- Are any of you agents for doctors? 229
- Credit where credit's due....... 226
- Buying goods in US and selling them to company in US 210
- Married Couples Allowance wasted? 190
- Director phone costs 155