Bursar's Checklist - VAT practical considerations
08 Aug 2024
The removal of the VAT exemption has come earlier than expected and school finance staff will now be thinking about VAT compliance. Nikki Miller, former bursar and school advisor at VWV, has compiled the following considerations for the next steps.
Checklist:
- Consider VAT registration
- Plan the nominal code set up in the context of the disaggregation of supplies for VAT
- Analyse fee and non-fee income and determine VAT treatment
- Prepare the tax code set up for the calculation of the input VAT currently paid and the future reporting of VATable supplies
- Combine the above steps to understand the school’s future partial exemption calculation
- Determine how the school fee will be expressed going forwards, ie inclusive or exclusive of VAT
- Review third party commercial arrangements, particularly catering
- Check 'Making Tax Digital' compliance
- Consider carrying out a ‘trial run’ to test your system
- Arrange staff training on VAT and allow finance staff time to make the transition
- Assess the impact of timing differences between billing cycle and VAT quarter on cashflow
- Review parent contract, invoicing and credit control templates
- Risk assess bad debts and consider the likely impact on fee recoverability to improve credit control
For further advice on any of the practical implications or how we can assist please contact our Schools advisor, Nikki Miller, at 0117 314 5423, or fill out the form below.