This is a tip for any PTA running a fundraising project with their school at the moment. Did you know you may be able to claim the VAT back on your order?
As an individual we know we have to pay VAT on things we buy but as it’s always already included in prices and we cannot choose to not pay it, we don’t really give it much thought during our day-to-day lives.
However companies and other organisations have to provide a VAT return to the HMRC detailing their VAT income and out-goings. A business can also claim back any VAT charges they have paid out when submitting their VAT return.
How does this help you?
You will automatically be charged VAT on the fundraising products you buy. This may or may not be itemised on your invoice but there is normally VAT included in the final payable amount.
PTA’s are normally not VAT registered, so cannot claim back VAT charges. BUT your school or LEA will be VAT registered. This means if you can get the invoice and payment to go through your school or the LEA’s books they will be able to claim that VAT money back. Meaning you essentially get the goods at a 16% discount!! (Please trust our maths on this one.)
So before you send in your order or write that cheque, ask your school or LEA if they can put the order through their books and ask your fundraising company to address the invoice to the school or LEA if they agree.
Hope you enjoy spending your extra profit!
Thanks for reading and