Only specific services are zero-rateable. See http://www.hmce.gov.uk/forms/notices/701-07.htm#P102_5875.
The VAT document above, Reliefs for disabled people, was rewritten in 2002 and is much more intelligible. Alas the message is no different. Our summary of VAT for dyslexia, drawing on this and other documents, is at http://www.dyslexic.com/articles.php?artid=26.
Regards
Ian Litterick
iANSYST Ltd
www.dyslexic.com
> -----Original Message-----
> From: BRYAN JONES [mailto:[log in to unmask]]
> Sent: 14 March 2003 09:13
> To: [log in to unmask]
> Subject: Re: VAT again!!!
>
>
> Could the pych not argue that he is providing a service to disabled
> people/people with disabilites and therefore the service shuld be
> VAT free?
>
> On 13 Mar 03, at 12:13, Michael Trott wrote:
>
> > Steve,
> > A few points - the government are trying to push all 'sole traders'
> > into becoming limited companies. The EP will only be charging VAT
> > because he/she has been told to do so by their local VAT Office - An
> > EP is unlikely to be able to reclaim much VAT on his purchases and
> > registering would not confer any significant advantage. The
> threshold
> > for registering is about £50,000 per year (less than 200
> assessments)
> > - but he/she may have other income or other circumstances such as a
> > partnership which push them over the limit without putting a lot of
> > cash in their pocket. But this is not the whole story, Customs &
> > Excise can require a trader to register if their monthly turnover
> > exceeds 1/12th of the threshold. OK, that's why. As far as you are
> > concerned if the EP has been told to register and charge
> VAT then you
> > have to pay it. Their clients cannot claim any exemption. Your
> > institutiom may be able to reclaim it if they pay direct.
> Perhaps your
> > finance department can give you advice. Assessments are not eligible
> > for zero rated VAT - As the EP's repport is diagnostic then this is
> > understandable (sort of) However, even once 'disability' has been
> > recognised VAT is still chargeable on needs assessments. I
> have tried
> > arguing the case for DSA needs assessments being VAT exempt
> twice but
> > lost both times. At least 3 assessors/centres have to charge VAT
> > including one NFAC centre. Some centres in colleges do not have to
> > charge VAT - but the situation is very complex. DfES accept that VAT
> > may have to be paid on EP reports and needs assessments.
> I'm surprised
> > more EP's aren't registered for VAT, £50,000 is not a huge income to
> > run a busy professional practice on especially if there is more than
> > one person involved. I suspect that several may be ignoring VAT,
> > assuming that their clients are exempt.
> >
> >
> > Mick Trott
> >
> >
> > In a message dated 13/03/03 16:47:44 GMT Standard Time,
> > [log in to unmask] writes:
> >
> > << One of the Educational Psychologists that we use has informed us
> > that he is having to set up as a company and will then need to
> > charge our students VAT on his dyslexia assessments. Does
> > anyone have experience of Ed Psychs charging vat?
> > Steve.
> > Steve Metcalfe >>
>
>
> Bryan Jones
> Disability Support Services Manager
> Tel: 020 8411 5367
>
>
>
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