Page 6 of 9 vat can be a complex area this table may

Page 6 of 9

VAT can be a complex area. This table may help you decide whether you can include VAT
in your project costs or not. Use this to explain why you have included VAT if applicable:
Status Outcome
You are registered for VAT and making regular
returns of VAT to HMRC
You will NOT be able to include VAT in your
project costs or grant request because it is
recoverable in full on VAT returns
You are not registered for VAT because your
business is below the threshold for supplies
You will be able to include VAT in your project
costs and grant request provided this status can
be verified by RPA
You are not registered for VAT because you
opted to join the Agricultural flat rate scheme
instead
You will NOT be able to include VAT in your
project costs or grant request because the flat
rate scheme you have chosen to join is a
simplification instead of registering for VAT. The
terms of the scheme mean that you receive
compensation for not being able to recover VAT
paid by your business by retaining a Flat
Rate Addition (FRA) added to sales invoices
in respect of supplies made to VAT registered
customers
You are registered for VAT but you have also
opted to join a flat rate scheme
You will NOT be able to include VAT in your
project costs or grant request because the
flat rate scheme you have chosen to join is a
simplification which compensates you for not
being able to reclaim input VAT. In addition, you
are able to reclaim input VAT on certain capital
assets costing over £2,000 through your VAT
returns
You are registered for VAT and making exempt
supplies meaning that not all VAT paid can be
recovered on returns of VAT to HMRC
You may be able to include SOME of the VAT in
your project costs or grant request providing the
extent to which your business cannot recover
VAT can be verified by RPA
Question 27: The grant can only be used to cover some costs. Tell us where the rest of
the money for the project (the ‘match funding’) will come from.
Question 28 Tell us when you hope to start and complete the project. It’s helpful if you can
try to be as accurate as possible. Do consider:
 Project start date – when do intend to start work on your project? This must be at
least 2 months after you submit your full application.
 Project completion date – this is when you expect to have completed the project
works, paid all invoices and submitted your final claim for grant.
Section 6 – The business case
Page 7 of 9

Sell us your project We’ll decide whether or not to invite you to submit a full application
based on what you say in this section.
Question 29: Tell us what the project will do for your business and what it will achieve,
ideally in no more than 100 words.
How will it improve your business? Consider the aim of LEADER funding, which is to grow
the rural economy. How will your project do this? Will it create jobs? Will in increase
productivity?