We are an Apprenticeship Training Provider which is 99% funded by the ESFA.
We are being absolutely hammered by VAT that we cannot recover because the supplies to learners we are making (we arent charging them, we are just delivering our ESFA (Government) contract, are outside scope. I have told HMRC that the money from ESFA is Grant money (because we do not charge on, and we are performing the service that they ask for in exchange for it). Didnt go well.
I have asked HMRC to confirm that we are an eligible body (that didnt go well either!) but we cannot sustain the cost of absorbing 35k pa of VAT incurred much longer... so desperately need some help...
Is there anyone out there that knows how we can recover this VAT? (or stop suppliers charging us?!)
If you are talking about that level of VAT then you really should be directing this question to your accountant.
If your sales are indeed outside the scope of UK VAT then why cant you reclaim the input tax?
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
