VAT Implications Arising from the Spending Review and Autumn Statement; Education

Chancellor George Osbourne has this week laid out the government’s spending plan covering the next 4 years that will bring various VAT benefits to a wide range of businesses.


Amongst these unexpected benefits is the allowance of sixth-form colleges to become academies therefore allowing them to recover input VAT incurred on non-business costs, placing all colleges that are eligible for academy status in an advantageous VAT position. This comes as a result of campaigning by multiple MPs and the Sixth Form Colleges Association who have long disputed the need for sixth form colleges to pay input VAT.


However, whether this will involve the respective colleges recovering VAT subject to normal VAT rules via a VAT return or whether suppliers will be required to exclude the VAT element from supplies of goods and services to eligible bodies remains to be seen.


If you are part of a sixth-form college and wish to explore how this new change could benefit you, or you wish to discuss any other VAT issues arising from the Spending Review and Autumn Statement, phone our free VAT helpline for expert advice.


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