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.
- NED remuneration for a Swiss national 88 3
- PAYE Desktop viewer and/or Moneysoft 14 1
- I'm thinking of moving to Ireland 405 8
- effective advertising 339 7
- Multiple director loans (Full amount or pro rated) 67 1
- Mobile phone and P11D 1,451 5
- Landlord probs - IHT, CGT and cashflow 314 7
- Company asserts 177 3
- Can't find a good web address 260 4
- Bank stream and receipt bank advice... 116 1
- Example accounts 151 1
- Director resignation 348 6
- VAT on unused stock 123 1
- When to recover vat on bad debts 166 4
- Sage Line 50 - create custom remittance advices 200 7
- Timesheet and travel expenses software for engineering consultants 216 5
- Nominal Code for Car lease? 202 8
- Software recommendations 326 2
- Cloud Based Software recommendations please 183 3
- Edible spam? 846 16
- Straight line write off of Purchase Goodwill ??? 485
- Has anyone been affected by the RBS payment breakdown? 470
- WIP Software 341
- No payroll scheme in place 297
- Is there anything wrong with this? 261
- Do subcontractors on work for residential (student accomodation) construction 257
- Small Part Disposal of Property 234
- Uncommercial property business 231
- Apple Employees - RSU vesting and tax witheld 195
- SA Penalty 190