VAT & Grant Funding
Hi, Our company has been awarded a capital grant from the council for smarter travel. The grant is for £4,000, we have to post copies of the receipts and then the grant will be paid. We are a VAT registered charity and my manager has asked if, when she is calculating the spend does she include VAT on the purchase's or not, I would say not and we would reclaim them as input tax, so the total grant amount would be exclusive of any VAT. Is this correct???? I have tried to contact the council and await a return call. Any advise would be greatly appreciated. Many thanks.
0
Comments
-
Thank you mrme89, we have looked at them and all they say is that it is a "capital grant", no other help. The council have now returned my call and are unsure, the contact person is going to check with their manager and get back to me. Many thanks. ☺0
-
Usual local authority grant rules are that the grant to the local authority is outside scope. So the treatment depends on the recipients VAT status. The grant is a lump of cash given for the defined purposes to cover expenditure. If the recipient can claim the VAT back from HMRC (assuming the activity is not an exempt activity) they should do so that the grant goes further. If the recipient is not registered or the activity is exempt, the VAT gets set against the grant so less can be done with the grant.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 328 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 57 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 275 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 203 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 584 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership