VAT Strategy and Project Planning

When planning projects, much thought goes into the design, financing, structure, environmental impact and the hundred and one other things that Project Planners have to consider – and often there is an assumption that “the VAT will take care of itself”. But VAT is not simply a compliance responsibility and, without proper attention, can generate huge, and unforeseen, costs.

This course dispels that myth that VAT is not really an issue for local authorities on the basis that they are able to recover all VAT costs which they incur. It gives Project Planners an insight into what can go wrong when the VAT is either ignored or left until it is too late to take action. At the end of the course, planners will be aware of the commonly encountered VAT pitfalls – and the opportunities – how they might be recognised and matters managed so that VAT does not fall as a cost to the project. The issues discussed are based on actual events at local authorities, so the case-studies will have particular relevance to the participants and will serve to reinforce key points.

The content of the course includes:

• VAT – strategic overview
• The cost of VAT
• Overview of VAT on construction and property transactions, including, when can an option to tax be exercised and what is the relevance of the Capital Goods Scheme?
• Supplies of staff
• Assessing the treatment of external funding – is it a grant or consideration?
• What are the VAT implications of the Local Plan?
• Non-monetary consideration – what does it mean and how can it be recognised?
• Contracts and Agreements – how they establish the VAT treatment, and the importance of VAT clauses
• Working with others (external partners) – Partnerships and “Joint Ventures”
• Community Projects – maximizing VAT reliefs
• The relevance of managing Third Parties’ VAT costs
• Externalisation and disposals – the opportunities and the dangers
• The importance of timing
• S106 Agreements and opportunities for managing VAT costs
• Why communication between directorates is essential in order to ensure compliance, manage costs and identify opportunities

The course would benefit:

• Those with day to day responsibility for VAT management
• Managers and Accountants involved in project planning, in particular capital accountants and capital project managers
• Lawyers
• Negotiators
• Officers involved in real estate transactions, economic development and regeneration

The course tutors are Peter Gladdish, Bill Petty, and Gordon Turner, who all have considerable experience of working with local authorities of all sizes on a broad range of VAT issues. Peter is also a member of the CIPFA VAT Committee.

If you wish to train more than 6 staff you may like to consider an in-house training course.