HMRC has issued VAT Information Sheet 09/11 providing guidance for academies, free schools, 16-19 academies, alternative provision academies and university technology colleges for 14 to 19 year olds, explaining how the refund scheme will operate and which bodies will benefit from it.

Ordinarily VAT cannot be recovered on purchases made in relation to non-business activities, such as the provision of free education. However, from the date of enactment of the Finance Bill academies will be able to recover the VAT incurred on goods and services they purchase and use in connection with the free education they provide and on purchases which are used for any other non-business activities. From the date of Royal Assent academies will be able to recover this VAT retrospectively from 1 April 2011.

For more information about how we work with Academies, please call Andrew Williamson on 01727 838 255.