Exempt income and VAT on costs
Registered childcare and welfare services are generally VAT exempt, so you do not charge VAT, but you also cannot reclaim most VAT on your costs. That makes every pound of equipment, repairs and supplies more expensive than for a taxable business.
We check how each income stream is treated, record VAT as a cost where it cannot be reclaimed and plan purchases with that in mind.
- Income streams classified
- Irrecoverable VAT recorded
- Purchases planned