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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... >>