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School Private Fund Contributions to School

debpal
4 months ago
Can anyone point me in the direction of guidance of when a schools private fund can contribute to a school bank account so that the avoidance of VAT is acceptable?

I do not have access to the educational VAT stream, but know that private funds can make donations to schools and the schools can then spend that donation (and reclaim any incurred VAT), however is it ok so spend on anything, for example a school trip?

Thanks
  • 4 months ago
    Try HMRC manual page VATGPB7700 [url=https://www.gov.uk/hmrc-internal-manuals/vat-government-and-public-bodies/vatgpb7700 ]www.gov.uk/.../vatgpb7700 [/url]from the second paragraph after the heading "Input tax recovery on purchases using private funds".

    Effectively the private fund needs to make a genuine donation (i.e. receive nothing in return), and the expenditure must be contracted for by the "official fund"/LA and be of a nature which it could have incurred if it had sufficient funds.