Music:
Kaiser Chiefs
Interview on page 18
Video Games:
Playstation Vita
Sports:
Jason Gardener
Exeposé Review of Sony’s new console on page 30 Interview on page 33
Monday 5 March 2012 • Issue 591 • www.exepose.com • Twitter: @Exepose • www.facebook.com/Exepose
Free
Students hit by Guild VAT rule
Photo: Henry White
Henry White Editor
STUDENTS now have to pay 20 per cent VAT on all student group fees, tickets, event costs, stash and any other form of purchase. Exeter University’s Students’ Guild has announced a change to its Value Added Tax (VAT) policy, designed to bring the organisation, which is a registered charity, in line with Her Majesty’s Revenue and Customs (HMRC) department’s tax laws and regulation.
“A combination of unfortunate timing and a lack of clarity has made this VAT issue hard for students and societies”
Katharine Bardsley, President of Exeter’s Chamber Orchestra
The move is aimed at clarifying the Guild’s tax position and to avoid possible retrospective taxation in the future. Under the Guild’s new finance rules, all income earned by student groups and Guild activities will be subject to the UK’s national VAT, currently set by the Government at a rate of 20 per cent of all income. James Fox, VP Participation and Campuses, speaking for the Guild, said: “We recognise that this will be of detriment in the short term, as groups will have to pay VAT on all income generated. However, we are doing everything we can to make the transition as simple as possible, and will ensure that everyone knows exactly how to deal with the changes.” The change was announced on 29 February but the tax will not be fully integrated into the budgeting and financial systems until the beginning of
the 2012/13 academic year. Despite the application of VAT onto student groups’ income, changes are being made to the Guild’s financial systems, which will allow them to reclaim any VAT on expenditure whilst minimising the amount charged on income. However, the Guild stated these options would not be available until the next academic year. Katharine Bardsley, a third year English student and President of Exeter’s Chamber Orchestra commented: “A combination of unfortunate timing and a lack of clarity have made this VAT issue hard for students and societies [to understand], especially when any profit societies make is ploughed back into the system to ensure it carries on.” By charging VAT on income costs, it is hoped any confusion and uncertainty between the Guild’s financial position and HMRC, which is responsible for the collection of all UK tax, will be avoided. Both organisations have undergone significant changes in recent years and this has led to some confusion over the position of the Guild, and many other Students’ Unions, whose charity status and role as a provider of student services isn’t clearly defined under tax legislation.
“The move is aimed at clarifying the Guild’s tax position to avoid restrospective tax. All income earned will be subject to 20% VAT”
The rise in costs as a result of VAT will predominantly affect next year’s students, many of whom will also be paying £9,000 a year in tuition fees. The Guild is hosting a meeting on Tuesday 6 March in the Long Lounge, starting at 17:00 for any students who wish to know more.
Guild addresses cross-dressing
See page 3 for full story