This update brings you the most recent developments for Academy schools.
Update on VAT refund under s33B
We have previously commented on the options available to Academies in respect of claiming VAT suffered on expenses related to the provision of free education.
Some Academies will have taxable business supplies in excess of the current VAT registration threshold of £73k, and so will be compelled to register with HMRC and submit monthly or quarterly VAT returns.
Changes to 2011/12 payment timetable
The Young People’s Learning Agency (YPLA) has announced that they are bringing forward the payment dates for all regular payments to Academies for the 2011/12 academic year. This is in response to concerns that Academies incur significant costs (for example payroll) in advance of normal payment dates.
From September 2011, all regular payments from the YPLA will be brought forward from the 18th of the month to the 1st of the month (or the following working day, if the first falls on a weekend or a bank holiday). This means that Academies will receive payment in 12 instalments during 2011/12, rather than in 13 instalments which applied previously.
These changes are entirely about the timing of payments in 2011/12 and have no effect on the total amount of funding paid to each Academy.