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.
- Setting up a practice 309 5
- Very large share capital by mistake 456 7
- VAT refund if only output tax on first claim 413 4
- 24 month rule and expenses 221 1
- Love is in the air 503 6
- HP agreement in Directors name but payments under company 649 17
- Stamp Duty 291 4
- Physiotherapist and vat and agency work ( one for Les Howard???) 234 4
- I am 34 years old, am I too old to start a career in Accounting ? which is the best way to pursue it 1,786 21
- Another Sneaky Tax Hike! 545 5
- Incorporation of gp practise 228 1
- Sage Instant Accounts Complete De-install problem 258 9
- Auto enrolment confusion 2,023 46
- Client Paperwork Retention? 566 13
- Paid staff their normal salary instead of SMP 574 7
- Tax Overlap Reporting 368 4
- Pay rise - how to enter in Moneysoft 391 9
- Reimbursing director travel costs 450 6
- Allegedly ICAS most of us at 50 should pack up - Interesting 495 8
- Sage 50 VAT Return 310 2
- DTA tie-breaker issue 300
- Tax Implicatins on a Directors Loan 286
- CGT for NOn UK residents 279
- Employer's pension contribution - need to be PAYE registered? 275
- What are the tax implications of overseas sales through a UK based company? 253
- profit or loss on furnishings and deed of trust 239
- Apprenticeship Levy 236
- Tenants in Common - Actual % split not written down 221
- Capital Gains personal representatives 219
- Discretionary payment to sick employee 199