Page 6 of 9 VAT can be a complex area This table may help you decide whether

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

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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
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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?
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