26 March 2019

VAT Annual Adjustments

We can provide support to Leisure and Culture Trusts with VAT annual adjustment calculations and getting MTD ready

Most Leisure and Culture Trusts make a range of supplies and as a result they have to perform partial exemption and non-business VAT calculations.  We are approaching the time of year when most partially exempt organisations are required to perform their annual adjustment calculations.  This year there is the added burden of MTD.  With this in mind we have been providing support to clients by reviewing their existing VAT procedures and calculations.  This has given clients the chance to ask questions and ensure their understanding of VAT rules is current.

From the reviews we have performed already it appears that for some Trusts the recovery of VAT has increased over the last 12 months. We have also identified opportunities to recover VAT on capital expenditure incurred up to 10 years ago.

The VAT calculations and recoveries are affected by changes to funding and service agreements as well as new activities and changes to existing ones.  We can help you to confirm that your income is recorded correctly and improve your VAT calculations.  We can also help you to ensure you are MTD ready and not exposed to challenge or question from HMRC.

Please contact us if you would like to discuss or us to review your VAT position.