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Tax Chat



Key dates

For a free copy of our Key Dates checklist, please contact us.

Accounts and Audit

Academies have to prepare annual financial statements in accordance with Companies Act and charity requirements and file them at Companies House, as well as with the Education Funding Agency (EFA).  This is a weighty document.

The financial statements must be audited by qualified independent auditors. Auditors have to provide an opinion on both whether the financial statements show a true and fair view and on whether academies have complied with regularity and propriety regulations set by the EFA and HM Treasury.

Revell Ward are experienced academy auditors and we are well versed with EFA accounting and auditing requirements. We can provide a cost effective solution for preparing and/or auditing your year end financial statements to the highest standard.


Budgets and Payroll

Our services to Academies go well beyond the year end compliance routines.

New Academies have to face up to the realities of monthly cashflow management, many for the first time. Annual budgets have to consider Balance Sheet aspects, depreciation of fixed assets and cashflow management, as well as Income and Expenditure.

At Revell Ward, we have developed a forecasting model specifically designed to facilitate the production of annual budgets for Academies – why not take advantage of our spadework?

We also have a busy payroll department, which can handle this important area for you – see the payroll section of the website for more details.


VAT and Corporation Tax

All academies are classed as ‘exempt charities’.  This means that every academy is automatically a charity, but it is not registered with the Charity Commission.  Being a charity means complying with extra regulations, but also brings certain tax benefits.

VAT incurred on non-business activities can be reclaimed using the VAT126 form if the academy is not registered for VAT, or via the usual quarterly VAT returns if the academy is registered for VAT.

The identification of different types of taxable supply between non-business, taxable, zero-rated, exempt and outside the scope of VAT can be complex. Revell Ward can provide expert advice on the treatment and classification of different income streams, as well as advising on whether the academy would benefit from registering for VAT.

Charities are generally exempt from corporation tax provided their income is applied for charitable purposes. HMRC allow charities to have up to £50,000 of income per annum from non-primary purpose trading (for example uniform sales and letting of facilities).  Income above this level is potentially taxable, though structures are available to manage this.