Action for Academies – VAT and Academies
Date: 19th July, 2011 | Author: Wendy Bambrick | Comments: 0
From September 2011, a new scheme will be put in place (subject to the passage of legislation) that allows Academies to recover non-business VAT directly from HMRC.
An Academy should already be registered for VAT with HMRC if it has a vatable turnover over £73,000 a year (the current HMRC threshold). If an Academy has taxable turnover below the threshold, it can still register on order to reclaim its non-business VAT under the new system. For those academies that have no taxable turnover, or that choose not to register with HMRC, arrangements will be made by HMRC for it to recover its non-business VAT by filing a alternative return.
Academies do not have to wait until September to register. Further information and guidance is available at the HMRC website.
For those Academies that are not required to register for VAT online there is no action to take at present. However Academies should be keeping records of their business/non-business split of VAT. Look out for further HMRC guidance on this matter is due to be published in the coming weeks.