Incorrect VAT Classifications

Posted on 16 January 2014 by Education Finance

We have been informed by Revenue and VAT team that they have encountered a number of errors recently by schools using the incorrect VAT classifications on their banking forms and also when raising CT10/3’s.

A list of the correct VAT classifications highlighting the main areas of concern is listed below:

Invoices to Babcock:

• Staff secondments (lead teacher time, wages, supply cover etc)  – 6
• Staff expenses – 9
• DAPH charges for attending meetings – 6
• TISP – 9
• KS1 / moderation – 9
• EMA funding – 9
• Traveller support – 9 

Supply cover charged to a University – 9
Recovery of costs from University for teaching staff – 9

School meals provided to academy schools – 6
Catering / refreshments provided generally – 6

Pre-school charges / nursery charges – 8 (exempt)
Breakfast clubs / after school clubs – 9
Cygnets – 9

Hall hire / room rental / classroom hire (non-sporting) – 8
Hire of computer suites – 6
Refreshments – 6
Sports lettings – 6 if for less than 10 sessions
Sports lettings – 8 if for 10 sessions or more (i.e. a block booking)
Hire of equipment – 6

Leases of land / rental income / most periodical rentals – 8
Leasing of County farms – 9
Leases of car parking – 6

Utilities associated with a lease (gas, elec, water, cleaning etc)
If simply a proportion of costs – 8
If separately metered then:

• Gas, elec – 6 (or could be the reduced rate of 5% if it’s a small school)
• Water – 7
• Rates – 9
• Cleaning / security / caretaking /waste / phones etc – 6

Photocopying – 6
Printing – 6 (but may be 7 if printing a book, booklet or leaflet)

Books / leaflets – 7 

Training provided / charges for attending seminars & workshops provided by DCC – 8

Should you have any queries please contact the VAT team on 01392 382410/ 382842.