We know that the decision whether to register with HMRC for VAT is an important one, even if an academy is above the registration threshold. Either way, due to partial exemption rules, VAT registration could produce a more tax-efficient result than submitting periodic claims.
To ensure income-generating activities such as allowing the local community to use your sports facilities are treated as charitable, and therefore tax exempt, academies may need to have their articles updated so that this type of activity falls within your academy’s charitable objects.
Many academies have significant and increasing cash balances, but their pension deficits from splitting away from local government have also continued to rise. A thorough analysis of an academy’s finances can reveal better ways to increase efficiencies and make savings.
With nationwide experience across the education and charity sectors with primary, secondary and Multi Academy Trusts (MATs) of various sizes, we are among the UK’s leading firms of accountants and auditors to the academies sector.
We always endeavour to act not only as accountants, but also as trusted business advisers who provide direction that gets results and gives you greater strength.
Have you read the Academies Financial Handbook 2020? Click here to download a copy.
We are founder members of the Kreston Academies Group which comprises academy specialists from the UK members of our international network, Kreston International. The group advises over 300 academies and shares experiences and expertise that will benefit you as a client.
Download our 2020 Kreston UK Academies Benchmark Report, this will give you a more detailed understanding of your academy’s financial performance by comparing it with those of a similar size and structure.