A local authority [LA] is disbursing funds from central government - £400k approximately to childcare providers from the PVI sector. They have decided that the best way to do this is to pre select 4/5 suppliers and in a form of credits to the various childcare organisations allow the providers to purchase up to the pre set amounts [e.g. £2,500] from their chosen supplier the goods they require.

Thus the selected suppliers would need a contract for this arrangement. I realise that all template contracts would need adapting etc but would you have a template contract to cover supply of goods in this circumstance or indeed be able to point me in the right direction.

Also the issue of VAT - as this is in effect a grant form central government with no direct benefit for the LA would this be considered a business activity? How do we handle VAT in this case?

This is from an organisation supporting community radio stations both in the UK and overseas: "Can we purchase and export radio equipment without paying VAT so long as the equipment is delivered and used outside the EU? (we've been given conflicting answers to this question)".

If we sell off a 9 month old computer which is now surplus to requirements, do we have to charge VAT? (We are VAT registered).

If we sell off a 9 month old computer which is now surplus to requirements, do we have to charge VAT? (We are VAT registered).

Dear Charlie, Many thanks for the last reply to my previous question.

I have another query. I rang HMRC but I still need clarification on VAT on capital projects related to childcare, and also where providers are either dual registered (charitable company) or unincorporated charities - what is the situation as regards VAT in capital and revenue projects?

Any assistance / pointers would be appreciated.

I have just started helping a local community shop with bookkeeping/financial management etc. Our most recent set of accounts have just become available withthe turnover in the P & L statement shown as nett of VAT. What is the rational behind this? Is the Cost of sales also nett. Many thanks

Hello Charlie With reference to a previous question asked of you on a licence agreement. We have another query - hopefully not too onerous! In clause 10 of the licence agreement you have provided for us, referring to the non-charging of VAT at this time. The client would like to add to the end of this paragraph the following - 'However any VAT charge agreed by both parties in the future shall be from a specified date and without backdating' Would this be ok. Would welcome your comments. Thank you

Hi, I'm trying to work out whether I need to become VAT registered before the end of the year.

I am right up to the £60k turnover, however part of this (£24k) is an Arts Council award. I hear different views on whether this needs to be included in turnover or not (I was told by one ACE funded organisation that they weren't VAT registered because the majority of their funding was through grants not income or private funds).

Could you provide me with a definitive answer please!

Many thanks