VAT free musical instruments through school..

[ampere]

How does it work?

In general, does the DC have to learn that instrument through the school's 'music tuition service'? How do they know?

Is it good value or do they bump up the cost of the instrument to compensate for the loss of VAT?

TIA

Techy answer.

This only applies to state schools. The school or education authority are still charged VAT by supplier, but they can reclaim it on their VAT return. They should only then charge the net amount (or less) to the parent - no bumping up allowed or this changes the VAT-nature of the deal.

The main rule is that the pupil must either be having tuition in school, or outside school and it supports a curriculum activity (GCSE Music being the obv.)

Doesn't work in independent schools as they can't reclaim VAT in same way. And they'd probably want a mark up anyhow, as they do.

HTH

Certainly does!

If my DS is going to take private music lessons, do you know how I could 'prove' that he's doing so, or if, indeed, the school would require me to show evidence of same before allowing him (me!) to purchase an instrument through the scheme?

Thanks.

Depends on the local authority and school policy really. Strictly, the reason that no VAT is charged to you is that it is 'closely related' to the VAT-free tuition that he gets from them, and takes the same VAT liability. If he doesn't get any such tuition, it can't be closely-related.

The LA or school may be lenient, or they may be sticklers - depends how well they get on with HMRC (LA's and academies for example are audited just like businesses.)

Can he join a school orchestra maybe? That counts as tuition.

Again, thanks, I must speak to the school then (an academy).

You're welcome, usually refuse to answer tax questions in my lunch break - seems ok if its on here!

The VAT free instrument scheme does not apply to academies. :(

HMRC say it can -confirmed late 2011 I think. Academies have the same VAT status as local authorities. Tea break

Just to make this clearer

An Academy would do this individually, not through the LEA. Academies do their own thing VAT-wise. It is technically possible, but whether they can be faffed depends on the individual school.

I bought my dc's instruments VAT-free - state school and lessons through county music service held at school during school time. Form had to be signed by music dept etc and specified the exact make of instrument. School organised purchase - only thing I did was fill in form and hand over cheque. So no, private lessons outside school wouldn't qualify.

VAT free through council music service for my DS (where he had lessons) - nothing to do with the school.

Same idea on council music service.

As long as there is 'non-business' education and/or music tuition being provided then the LA or school can reclaim the VAT. The charge to the parent/pupil follows the same VAT liability (non-business = VAT-free.)

I went to shop with DD and she tried out various instruments. Chosen one was put aside and shop faxed a purchase order through to school. I then paid school the net amount and a week later the instrument was handed over to us. It is an academy but DD has lessons through county music service on site. Brilliant scheme that saved me a fortune.

My music teacher friend says the school ones are more expensive than getting online, that schools get a mark-up etc. She organises string instruments for her pupils for less, but guess she has knowledge / contacts etc.

I'm not sure if it schools getting a mark-up Dozer.

I bought DDS cello from a local shop whose walk-in prices are much more expensive than their online prices, apparently you pay for the service! The VAT reduction was still more expensive than buying online. In the end I actually got their educational price, which was cheaper.

I think schools are allowed to make an admin charge, though the two schools I have bought through didn't do this.