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Is CITB refund for training taxable ?

I am not sure where to record the income to

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I have a client who is paying the CITB levy they have no employees only sub contractors they have received refunds for training from the CITB, no paperwork has been suppplied , I have few questions 

1. should this income be included on the VAT return as a box 6 item (I assume outside the scope for VAT) 

2. where should the income be recorded ? as other Taxable income or non taxable income or offset against cos:subcontractors 

Any advice would be appreciated.

Thanks 

 

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15th Jan 2019 16:42

Clue. If you get a refund for something, allocate it to where you posted the expenditure which is being refunded. VAT treatment will follow from that.

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15th Jan 2019 17:21

They're not "refunds" so much as "grants", are they ? What supply is being made to the CITB here ? None.

Haven't dealt with one for ages but I believe no VAT is added and they're outside the scope of VAT. Outside the scope is the clue here - nothing to do with VAT, don't enter them on the return.

Agree with Andy - set them against the cost of training.

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16th Jan 2019 09:45

I code to other income - HMRC states grants outside of scope of VAT as not a "consideration for a supply" therefore does not appear on the VAT return

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