VAT thoughts for academies

From the Nottingham Post: http://www.nottinghampost.com/Academy-schools-given-warning-VAT/story-19840424-detail/story.html


Giles Calverley, business services manager at international accountants and business advisers Mazars in Nottingham, says that where academies do go for registration, large areas of their activities will be not be subject to VAT – such as donations, grants, hire of property and meals provided to students. VAT registration, he stressed, is an option even if the academy does not exceed the threshold – currently £79,000 a year. This is because registration could enable increased VAT recovery on business expenditure and reduced compliance costs.