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15 September 2015
Advice required on the VAT implications for a community interest company.
A community interest company has a low level of activity at present but VAT matters are coming to the fore because it is expanding. At present current and major expenditure is grant-funded and this includes the VAT element. The terms and conditions of the grants usually do not allow input VAT to be reclaimed or if it is this must be returned to the funder.
I think that the company’s intention might be to charge VAT on turnover relating to advertising events and programme sponsorship revenue but not on grant donation or subscription income. I think subscription income may need clarifying with HMRC. The company could reclaim the input VAT on purchases made before registration (six months) and on programme costs expenses and capital expenditure.
- Would the grant-funded restriction...
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