Sector VAT Issues
Local authorities remain complex organisations from the VAT perspective due to the special VAT regime within which they operate under Section 33, VATA 94. The sector faces continuing pressures as economic strategies across the UK look toward Regional Approaches and “Powerhouses” alongside city regeneration projects and Business Improvement District initiatives. Mergers remain on the agenda in parts of the UK and Centurion has been heavily engaged in supporting both councils and the new charitable trust bodies taking over the delivery of leisure and cultural services in the community.
How Centurion help
With joined up communication key in a large organisation we ensure that through our VAT Management Program meetings a member of the Estates Team attends to identify projects within the capital plans where VAT issues need to be addressed in advance of any contractual undertakings. This approach has produced real compliance benefits from the early identification of VAT issues.
The increasing collaboration across authorities and with bodies such as charities and housing associations, particularly on social care provision, is often an area where Centurion assist.
The local authority sector has developed quite a sophisticated VAT awareness over the years particularly through the engagement of CIPFA and direct communication from the CIPFA VAT Committee with HMRC. Centurion’s VAT support role has expanded as the sector increasingly recognises the financial costs which can arise from poor compliance and HMRC show no “light touch” in their application of penalties to a public sector body.
Centurion VAT is an accredited NEPRO supplier and as such any member or associate member of the North East Procurement Organisation has the option to request a quotation or call off our services via NEPRO against the following categories:
- Finance Audit & Accounting - Taxation