VAT for Academies

The VAT status of academies

• Grant funding – the importance of ”business” and ”non-business’ ‘activities
• Allocating costs correctly
• Taking advantage of zero and reduced rates available

Treating business income correctly

• Supplies to other educational institutions
• Uniforms and photos
• What goods and services are ‘incidental’ to education (and what are not)
• Grants, sponsorship and donations
• Catering for staff and visitors
• School trips

Land and property issues

• VAT zero rates for new construction and annexes
• Letting or leasing academy land, buildings and facilities
• The VAT option to tax
• The VAT Capital Goods Scheme

Partial exemption

• How to determine whether VAT recovery should be restricted
• Direct attribution of VAT on costs
• Recovery of ‘non-business’ input tax
• Standard and special partial exemption methods for business supplies

VAT recovery and VAT returns

• Evidence needed to claim VAT
• Blocked input tax
• How to complete a VAT return correctly
• Penalties for non-compliance