VAT for Independent Schools - All Change from 1 January 2025

Introduction

The fact that education in independent schools will become standard rated from 1 January 2025 has been well sign posted in the media.

This new virtual classroom seminar will examine the VAT impact.

Invaluable for independent schools and their advisors, this session will also examine input tax, and the rules for correct VAT recovery, including the various partial exemption methods and ‘non-business’ allocation rules available.

A reasonable grasp of general VAT matters is assumed.

What You Will Learn

This live and interactive session will cover the following:

• Supplies and income - What is the VAT liability?
• What exactly is covered by the new standard rate?
• ‘Anti forestalling’ provisions
• ’Closely related’ goods and services
• Distinguishing between ‘business’ (taxable and exempt) and ‘non-business’ income for VAT purposes, and the resulting effect on input tax
• Grants, donations, or sponsorship?
• Breakfast and after school clubs
• Transport and school trips
• Vocational training
• English as a foreign language
• Supplies to other educational institutions
• Catering - in house and catering contracts
• Sales for courses, and from campus shops
• Supplies of staff
• International matters
• Distance learning, e-learning and live conferences. Webinars - real time and anytime
• Different place of supply rules
• The reverse charge
• All aspects of how this works in the sector and how it should be applied
• Land and property issues
• Construction costs for buildings and student accommodation
• Charity concessions for zero rating - beware the 5% use rule
• Lets of rooms, buildings, and conference facilities
• Licences to occupy land
• Sports lets and vacation lets
• The VAT option to tax - an overview relevant to the sector
• The VAT Capital Goods Scheme
• Partial exemption and ‘non-business’ income impacts
• Direct attribution, apportionments, standard and special methods
• Methodology and examples
• VAT Zero rates on purchases and VAT returns
• The zero ratings available, e.g., for advertising, and equipment bought with donated funds
• The thought process for claiming input tax correctly and evidence needed
• Penalties for errors, the error notification system, and making disclosures to HMRC
• How to complete a VAT return correctly, and avoid the beartraps

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.