School Purchasing for Personal Use

[garethEds]

Morning

 

I have been told this morning by a colleague that they have purchased ciomputer through a school (at a discounted price) and are paying the school back - making use of the school discount - which is a lot more than the personal educational/teacher discount they would otherwise get.

 

They are saving a packet.

 

I've always been told that we cannot do this and that it is against some sort of rule.

 

Can anyone confirm? Is it allowed in your school as long as the school get their money back?

 

Cheers

 

Gareth

[tommej]

Don't do this.

[korifugi]

I thought it wasn't allowed as it circumvents VAT?

[garethEds]

Don't do this.

 

Yeah - I'm not doing it. A colleague has just done it through the school where his wife works. I told him we couldn't do it as a school but he is adamant we can because his wife's school did it for him.

 

'Don't do this' - good advice - but why? Why do you say that? What rule is it? Where is it written? The school in question have told them that it's being used for school work so why not take advantage?

 

Gareth

[garethEds]

I thought it wasn't allowed as it circumvents VAT?

 

That's what I thought - but they will be paying the VAT. It is still a lot cheaper. I'll check the VAT situation.

 

Gareth

[HaleStorm]

It depends on the schools policys probably, aslong as a full and correct paper-trail is generated with full invoices and reciepts filled in

[garethEds]

It depends on the schools policys probably, aslong as a full and correct paper-trail is generated with full invoices and reciepts filled in

 

I'm still not sure. My school will not allow it.

 

Gareth

[plexer]

If the school purchases something which is later sold on they have to pay the vat portion to hmrc that is all legal.

 

However allowing staff to do so creates more of an admin burden on the finance staff which is why most schools do not allow it.

 

Ben

[Oaktech]

I've previously heard of members of an IT department doing deals with a supplier to recieve the educational discount applied to a batch of 'for school' laptops, to purchase laptops for personal use. They then paid for them directly to the supplier with the VAT portion and seperate invoices to keep it all legit, but then were delivered as one consignement thus saving delivery. The only problem with doing this is that they had to have exactly the same machines as the school!

[CyberNerd]

We checked this out with the Inland revenue via the local authority because students are allowed to buy musical instruments through he school and avoid VAT.

Even if the computer is to be used 100% for work or buy a student for educational purposes it cannot be purchased by an individual through the school.

 

This was an email from our finance team to a parent who wanted to buy through the school:

 

I have a quotation and order requisition for two laptops and software. I spoke to X about widening this scheme for other parents. As she was unsure about where we stand with VAT she checked it with County. County say we cannot reclaim VAT on laptops as they do not meet the criteria. Unbelievably the inland revenue does not consider laptops to be "closely related to the non-business provision of education".

 

If you want to pick up the order requisition you can order through our reseller using your own credit card - you still benefit from the educational pricing, but will need to pay the VAT.

[DAZZD88]

It may not actually be purchased through the school itself. By this I mean that our supplier, Insight UK have allowed any staff member of the school to purchase from them as a personal customer but still get the usual discount the school would get but with VAT added. If that makes sense.

 

Just in case it doesn't, here's an example:

 

Regular Supplier Price of an item: £100 Ex Vat

Discounted Supplierprice: £80 Ex vat

 

Personal Purchase from Supplier using discount would be: £80 +20% (VAT) = £96

[mthomas08]

I thought it wasn't allowed as it circumvents VAT?

 

Exactly.

 

We dont do this, it has been raised usually every 18 months by a member of staff: Answer is no. If the government got wind of it I can bet some serious heads will be bashed.

[X-13]

I've always been told that we cannot do this and that it is against some sort of rule.

 

Can anyone confirm? Is it allowed in your school as long as the school get their money back?

 

This, from what my HT has said, is illegal. [i wanted to order a laptop though the school.]

[JonWPS]

You're entering a world of pain if you go down this route.

[MK-2]

what about if your school already pays VAT?

[plexer]

It's not illegal at all as long as the VAT is paid there isn't a problem.

 

School buy laptop = invoice + school claims back vat.

 

Schools sells laptop = School generates an invoice and sells it inclusive of vat.

 

School pays vat to HMRC

 

Ben

[Gibbo]

Don't Apple do a scheme to allow teachers to buy discounted Macs through the school?

[garethEds]

Don't Apple do a scheme to allow teachers to buy discounted Macs through the school?

 

Tell me more....

 

Gareth

[glennda]

I tend to get things from my suppliers direct cheap - but i always bacs the money over direct rather then him invoice the school- he still does things cheap for me or pretty much @ his near cost.

[SYNACK]

Don't Apple do a scheme to allow teachers to buy discounted Macs through the school?

 

As qualifying teachers, in typical Apple fashion theis 'discount' is rubbish though maxing at something like 8%

 

If you are buying through the school you are commiting fraud as the pricing from most suppliers does not cover personal use only direct purchases by schools. If you are circumventing this you are misrepresenting yourself. Its also dodgey from a tax standpoint as you have to be really careful not to get the school in trouble.

 

Teachers already get all sorts of deals, usually not to the same degree as a school but quite decent non the less. Discounts that do not extend to some of the lesser paid staff that could do with it even more either... bitter much, yes.

[Scifigirl]

I work for KCC and we get quite a decent discounts package, not just Apple but HP, amazon, asda, also discounts on local stuff and staff club (tho i will never ever go on one, unless its russell howard) shows.

 

Our school would let us buy through them, but its so much hassle i dont bother.

[Sylv3r]

I think you could get software and I now believe hardware through the RM Basement (not sure if you have to purchase RM hardware).

 

I also have a feeling our LA used to run a similar scheme to the bike scheme where you could purchase a PC on your payslip prior to the tax reduction.. although I could be wrong and have got the wrong end of the stick but this was a while ago.

[laserblazer]

Staff and students can buy software via the LEA here. It is the same price as the school would pay plus the VAT. I don't know if they can supply hardware in the same way.

[enjay]

Sounds like an admin nightmare for the school, and one from which the school doesn't actually benefit.

 

Also, I think that the fact that a company offers a discount to an educational establishment doesn't automatically mean they would extend that to staff personal use. I have given staff members contact details of suppliers and said "see what you can negotiate with them", but wouldn't buy stuff through educational suppliers, or even non-educational ones such as ebuyer or Amazon, for staff.

[sjatkn]

Both my current and previous school did not allow you to purchase through the school. This was because (far as I am aware) a member of staff abused the facility by ordering something and then refusing to pay for it, leaving the school out of pocket and with an item which was useless to them.