LEAs cannot, and never should have been able to, reclaim the VAT on DSA
equipment since it belongs to the student rather than the LEA.
The payment of DSA has been handed over to the SLC. LEAs are still
responsible for considering the applications and authorising the payments.
We enter the amounts and method of payment on a new national web based
system, Protocol. The SLC then actually issue the payments. They don't have
a decision making role in the DSA process. One of the benefits of this new
system is that all LEAs will now have the facility to authorise payments to
third parties, either by cheque or BACS.
So LEAs are still very much in the equation - as a source of blame or
otherwise. We'll continue to be the main source of help and advice for
students applying for DSA. In addition, there's a new national Student
Finance Direct customer support office (08456 077577) that will be able to
deal with student's basic enquiries both during and outside office hours.
Kath Henderson
Team Leader - Student Support
Education Department
Overseas House
PO Box 191
Quay Street
Manchester Tel. No: 0161 234 7076
M60 3ST Fax No: 0161 234 7004
Michael Trott
<Ukassessments@AO To: [log in to unmask]
L.COM> cc:
Sent by: Subject: Re: VAT on personal support via Non-medical
"Discussion list helpers allowance
for disabled
students and
their support
staff."
<DIS-FORUM@JISCMA
IL.AC.UK>
25/04/2004 10:47
Please respond to
"Discussion list
for disabled
students and
their support
staff."
The issue has been discussed at QAG and Round Table several times. My
feeling
is that DfES are unlikely to take up the VAT challenge. I feel that
government probably regard it as accounted for within the allowances set.
There is also
the issue that VAT only effectively reduces the allowances for a relatively
small number of students at the upper limit of the allowances.
As I understand it, LEAs cannot reclaim VAT now - this came up at a
presentation to W Mids LEAs by Student Loans Company (SLC) who are taking
over all
payments of DSAs. The LEA is NOT spending any of 'their' money now and it's
doubtful they ever were as DfES assured me that there was an element within
the
funding paid to LEAs to account for any VAT charged.
Personally, as someone who has to charge VAT and pay it to Customs I spend
a
lot of time sorting it out and I regard it as a big nuisance circulating
money
between government departments. However, it is made worse by the insistence
that I then try to reduce the VAT charged on equipment when in 99% of
assessments it makes no difference at all to the students. This attempt at
reducing VAT
as a paper exercise takes up my time and the time of suppliers that would
be
better spent helping students.
There are obviously cases where some students at the upper limit are
adversley affected. It's my view that it would be better to have a
discretionary
additional allowance in such cases. However, this is unlikely unless the
DfES have
absolute faith in the DSA system. Therefore our energies are best expended
on
getting that right. Personally, I would not want QAG or Round Table to
spend
any time on this but, rather get the system working so that DfES have
enough
faith in it to increase the allowances where necessary.
As of this term DSAs are being handed over to SLC. LEAs are no longer in
the
equation as a source of 'blame' so to speak. If you feel strongly about the
VAT issue you could write directly to DfES and SLC to get them to resolve
it.
You COULD ask your MP to take up the matter and ask why the figures
published
for DSA are sometimes reduced by VAT and sometimes not, therefore the
allowances
could in fact vary between students.
Regards,
Mick Trott
In a message dated 24/04/04 14:19:39 GMT Daylight Time,
[log in to unmask] writes:
<< OK...thought this might be the case but wondered if anyone had indeed
successfully argued the point - seems not...would this be the sort of
issue
the Round Table could take up? Perhaps in the age of joined up government
it
surely should be possible for the DfES people to talk to the VAT people
and
establish some ground rules? Does anyone know how to get an item on a
Round
Table agenda?
We do need to be careful though that we are talking about the same thing
because as I understand it there is both a Zero rating rate and an
exemption
from VAT which are actually different things...albeit resulting in same
end...
But finally is the widespread belief that LEAs who pay VAT able to claim
it
back actually true and if this is the case is there any way they are able
to
recycle this funding for student support...of coure where I'm heading is a
concern that as we are moving into a system which is much more transparent
and above board in terms of employment legislation / rights etc by moving
support workers onto contracts with all that entails - tax / employers NI
/
benefits + 17.5% VAT on all of that etc the VAT levied can make
considerably
limit the amount of support available for some students. Exemption from
VAT
would do much to stretch this support out as far as is possible without
having to resort to not entirely legal or satisfactory methods...
>>
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