VAT ~ rural payments agency single payment scheme

clearaccounting100

Hi everyone, this is most probably a really stupid question, i have just took on a client with a small holding and i am doing his VAT return. He has goverment subsidy under the RPA Rural payments agency single payment scheme. I am assuming that these payments that he receives do not contain any VAT, does anyone know if this is correct? If so please please let me know, I have trawled the internet, for the answer not got a solid answer :confused1: Thanks

burg

You are correct no VAT as they are a subsidy. As well as the SPS there are others from the RPA such as Environmental Stewardship.

These are taxable though.

clearaccounting100

Thanks a lot for that, its much appreciated :001_smile: