VAT for Charities and Education Establishments
Unfortunately VAT can be an expense as well as an administrative burden to a charity or education establishment- a fact that isn't helped by the complex VAT rules that apply. This course is a must for all finance staff working in these organisations.
Overview of the VAT system
Compulsory registration- what is taxable turnover?
The voluntary registration 'decision'
Income and output VAT
Is the income within the scope of VAT?
Is the income consideration for supply?
In the course of business?
Donations and grant funding
Grant funding v contract for services
If income is within the scope of VAT, what 'rate' is it?
Zero rate, exempt and reduced rate of VAT
The sale of second hand goods
Welfare and ambulance services
Fund raining events
Cost sharing and collaboration
Staff supplied to another charity
Composite supplies (a mixture of the above)
Deemed supplies (also referred to as the 'gift rules')
Exports and dispatches of goods from the UK
The trading subsidiary
Expenditure and input VAT
The fundamental principles of input VAT recovery
Documentary evidence- the VAT invoice and simplified VAT invoice
Attributable to taxable supplies in the course of business
Non business use/exempt supplies
The partial exemption calculation using the 'standard' method
The de-minimis tests
Potential special methods
The annual calculation
The Capital Goods Scheme
Blocked input VAT- company cars and business entertaining
Employee derived costs and expenses
Business entertaining, staff entertaining and subsistence
Zero rating certificates and when they can be issued
The purchase of goods and services from overseas
The reverse charge mechanism
Accounting and administration
The accounting system and VAT
Making Tax Digital for VAT (implemented 1st April 2019)
Completing the VAT return
Time of supply, the VAT invoice and credit note
Bad debt relief
How to correct errors on previously filed VAT returns
HMRC relationship and the appeal process
Recap, Q&A, client specific issues