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dpack

now a tax question re a community orchard

can a friends of managed community orchard claim to be a food producer and be zero rated for vat?

long term it should not make much difference(a tub of grease and some BFandB every year is not a big expense but 30 tree guards and 30 trees might have a couple of hundred quid vat to be saved and if we expand into bush planting around the perimeter it might be the same the year after.

i spose phone the vatman might help but having chatted to gov depts before getting through and getting a sensible answer can be a full time job for days so i was hoping somebody might have experience of this sort of issue.
OtleyLad

I know a company can be registered for vat and claim back any that it pays - if what you might be selling is food/plants I would have thought that there wouldn't be a lot of vat to pay anyway and you would most of the time claim back more that you had to pay. Not sure how this relates to charities/community groups though.
dpack

i dont think we plan to sell fruit we want a variety of groups,schools etc to get involved so them having a share of the harvests might help motivate them to help out ,i was thinking more of the vat on start up costs of trees,treeguards etc

i spose whether it is worth it depends on how much effort would be needed to save a couple of hundred quid ,it might be easier to get an extra sponsor than to get the vat back.
Lorrainelovesplants

I beleive you can only be registered as a food producer if you get through the EHO as a food producer - which you'll have to do a HACCP plan and show how you are preparing this food for sale.
Food is zero rated for VAT, but are you REALLY going to be big enough for all this hassle?
Hairyloon

I would think that the paperwork and stress involved in registering for VAT is likely to outweigh the savings... unless you have a tame accountant who will do it for you.
Midlandsman

There's some details here:

https://www.gov.uk/vat-charities/overview

And more here:

https://www.gov.uk/government/publications/vat-notice-7011-charities

HTH

MM
Pilsbury

Yes you can register as a food business.
Jerky is zero rated but the bags, labels, insurance, pitch fees and all the rest can be claimed back and none paid on the product for sale...
vat is pretty easy to do on a half decent account program on a laptop
dpack

thanks folks i will pass the info to the treasurer Cool
dpack

however a quick look makes me think we are mostly ineligible and getting an extra few quid will be the sensible option.
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