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VAT and Nurseries.. are any VAT registered?


BroadOaks
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I was just wondering, well pondering, if any nurseries are VAT registered? If so then how did you manage it?

 

From Gov Website:

https://www.gov.uk/guidance/vat-exemption-and-partial-exemption

 

Some goods and services are exempt from VAT. If all of the goods and services you sell are exempt, your business is exempt and you won’t be able to register for VAT. This means you can’t reclaim any VAT on your business purchases or expenses.

 

It mentions "ALL of the goods and services"

 

So, if we sold something that was not except.. we could then become VAT registered??

 

What would this something be???

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Nursery fees are fully exempt from VAT, so even if you were partially registered for VAT, you would not be permitted to add VAT to your fees.

 

Partial registration could be useful if you have significant income outside of nursery fees. However, the rules on claiming back VAT on purchases in such a scenario are strict and VERY complex. You would need a very good accountant!

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I was given an idea from a group on a social media that might work to save settings money on certain items they purchase regularly. It will offset the VAT losses we suffer... however, it is still in discussion at this time.

 

Basically it would be to form a local consortium company. This could give this company great buying powers from a set of suppliers, if it becomes popular enough. This is done in the maintained sector i believe.

 

it has also come to my attention that some maintained nurseries are able to purchase items VAT free, through their LA :rolleyes:

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it has also come to my attention that some maintained nurseries are able to purchase items VAT free, through their LA :rolleyes:

Yes, a lot of LA's maintain a list of preferred suppliers and offer centralised purchasing to their schools.

 

The ability to claim back VAT at 20% on purchases and also receive discounts ( n many cases up to 100%) on business rates puts us in the private sector at a significant disadvantage.

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Another idea going around my head and while we are on the subject of saving money and with you mentioning Business Rates;

 

Many settings hire a room within a Church Hall or Community Centre and are usually therefor except from Business Rates.. so would it be possible to set up a Charity Company.. lease a premises via this company thus pay no business rates and then "hire" the premises to a nursery?..

Edited by BroadOaks
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