When a school converts to academy status, control transfers from the local authority to the academy trust, including responsibility for VAT accounting.
As almost all schools will be in a VAT recovery position, it is essential that VAT recovery is administered efficiently to avoid a 20 per cent dent in cash flow or, in worst case scenarios, a 20 per cent dent in the academy’s budget.
Unlike other businesses, academies have a choice between two methods of VAT reporting – the usual VAT registration method or the abbreviated Section 33B Refund Scheme. Each has its advantages and disadvantages and which will better suit your academy depends on your profile.
At UK VAT Advice we have the specialist sector knowledge to guide you through making the decision, helping you to implement it and to deal with your ongoing VAT accounting.
Our aim is to give you the tools to deal with your VAT reporting and we will then support you with assistance and advice as the system beds in and with any queries arising.
As you move forwards as an established academy, you may begin to look at more adventurous planning and VAT will always be a feature in anything you look to do. We will support you and guide you through the process, to avoid pitfalls and maximise benefits.
For more information on how UK VAT Advice can help you, please contact us.