Grants and ESFA Funding
The main funding grants received by academies are not be subject to VAT, as the grants represent a non-business receipt, rather than consideration for a supply.
In addition to the main grant funding, other funding may be received, such as NNDR (National Non-Domestic Rates) payments towards the cost of business rates imposed on academy buildings.
Insurance top-up funding may also be received by certain academies with specific and exceptional circumstances such that they are unable to meet the full cost of insurance premiums from their main grant funding.
VAT Treatment
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