School debtor invoices to Babcock
Posted on 9 December 2013 by Education Finance
Just to finalise the VAT treatment for the various transactions between schools and Babcock – and thanks to various people at Babcock for clarifying what the transactions are for. The VAT treatment should be as follows:
Vatable at 20%
- Secondments of staff to Babcock
- DAPH attendance at review meetings – on the basis that the school reps are providing an advisory-type of service to Babcock
Outside of scope (no VAT)
- TISP – this is grant-type funding
- KS moderation – this is a contribution towards costs of statutory work carried out on behalf of LEA
- EMA and traveller payments – again these are grant-type payments to schools
For the 3 items listed above the key test is that there is no service being provided by the school to Babcock.
The above information will be included in the schools section of the next update of the VAT Manual.
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