(scotland) Limited
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Our intervention saves client penalties

A further education client asked us to review all its income sources and advise whether they were “business” or “non-business” (outside the scope grant income). Where the income was “business” we advised if the income was taxable or exempt.

We implemented a system to allow the college to operate its “business/non-business” and “partial exemption” calculations accurately. As a result of errors in its previous system, an Error Correction Notification required to be submitted to HMRC. This “unprompted” disclosure resulted in the college receiving an assessment but incurring no penalties due to our intervention.

To ensure all finance staff understood the vagaries of VAT within the education system, especially the concept of “business/non-business” and “partial exemption”, a one-day training course was successfully run.