Taxation

Specialist Academy School Taxation Support

Despite being a type of charity, academies cannot ignore taxation. The main taxes that must be considered are VAT, Employment Taxes and Corporation Tax.

A member of our team has previously worked as a school business manager and this insight means we are ideally placed to appreciate the difficulties in running an academy’s finances. We provide a wide range of ad hoc and regular services to clients to help them with their day to day accountancy needs. We have experience in working with all of the major academy accountancy software packages, including PS Financials, FMS and Civica.

Corporation Tax

Although academies so not seek to make a profit, it does not mean they can completely ignore Corporation Tax.

Once formed the academy needs to register with HMRC by completing form (ChA1). Support with this registration process is provided as part of our conversion support service.

Specialist advice from experts in the sector

There are a number of basic tax exemptions available to academies under the charity tax legislation. However, not all income streams are exempt, for example certain types of lettings. Where the amount of income from these non-exempt sources exceeds £50,000 in any accounting period then the academy will be required to calculate the taxable profit or loss from those combined sources and submit a Corporation Tax return. We can provide guidance on which of your income streams are non-exempt and establish whether a Corporation tax return is required.

VAT

Academies have a special tax regime which allows them to reclaim VAT on costs associated with their primary activity of providing free education. However, they also need to consider whether VAT registration may be required if their taxable business supplies exceed the VAT registration threshold.

Griffin Academy Consultants can provide the following VAT services:

  • VAT126 – guidance and assistance on completing the claims, including what must be excluded
  • Assessing whether the academy trust should become VAT registered
  • Helping with the VAT registration process and providing guidance on which income streams should have VAT charged

Employment Taxes

Academies need to ensure they are compliant in terms of employment taxes. Your payroll provider should calculate your monthly PAYE/NI liability, but you also need to consider the following:

  • Dispensations for employee expenses such as travel and subsistence
  • Completion of P11D forms where required

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We pride ourselves on our professionalism and knowledge. Let us put that to use to start benefiting your business.

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Academy Services

  • Audits & Accounts

    All academy trusts are required to appoint auditors and file audited accounts with the Education Funding Agency (EFA) and Companies House.

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  • Accountancy Support

    We provide a wide range of ad hoc and regular services to Academy clients to help them with their day to day accountancy needs.

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  • EFA Reporting

    Academies have a number of EFA reporting requirements. As sector specialists, our Academy Accountants have experience of preparing these EFA returns and ensure our clients file all returns before the due date

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  • Taxation

    Despite being a type of charity, academies cannot ignore taxation. The main taxes that must be considered are VAT, Employment Taxes and Corporation Tax

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  • Governance

    Griffin has extensive experience working hand in hand with academy clients to ensure the Governance systems they have in place are robust

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  • Financial Due Diligence

    Financial due diligence provides an in depth look at the financial position and performance of an academy trust. This requires more than just checking the most recent set of management accounts

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  • Internal Audits

    We undertake internal audit services for many Academy Trusts, allowing us to gain a deeper understanding of your systems and policies because of our experience in the field

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For more information on our services, or to arrange a free initial meeting to discuss how we could help your business, please get in touch.

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Griffin Chartered Accountants offer a full range of accountancy services to SMEs across the South West.

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