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VAT ~ rural payments agency single payment scheme

clearaccounting100clearaccounting100 Feels At HomeRegistered Posts: 49
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


  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    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.

  • clearaccounting100clearaccounting100 Feels At Home Registered Posts: 49
    Thanks a lot for that, its much appreciated :001_smile:
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