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.

Course Content;


Overview of the VAT system

Basic principles

VAT registration

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

        'Sponsored' events

        Cost sharing and collaboration

        Staff supplied to another charity

        Membership income

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
Partial exemption

    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