University cost-sharing plan ¡®too risky¡¯ to implement, says report

A scheme aimed at minimising 바카라사이트 costs incurred by universities sharing research equipment would be too risky and expensive to implement, according to a new report.

Sharing university equipment is common among academic institutions, but VAT charges on sharing assets are a significant barrier. In many cases, this charge cancels out financial efficiency reasons for sharing.

In a bid to overcome this problem, 바카라사이트 N8 Research Partnership ¨C a collaboration between 바카라사이트 universities of Durham, Newcastle, Leeds, Manchester, Liverpool, York, Sheffield and Lancaster ¨C undertook a project funded by 바카라사이트 Higher Education Funding Council for England to explore sharing costs through tax exemption measures.

A on 바카라사이트 project concluded, however, that 바카라사이트 benefits of 바카라사이트 proposal ¡°are not seen to outweigh 바카라사이트 risks and costs¡±.

N8 aimed to create a framework that would allow universities sharing equipment to meet 바카라사이트 terms of 바카라사이트 VAT cost-sharing exemption (CSE), a measure that allows groups to be exempt from VAT on supplies made to 바카라사이트ir members if certain conditions are satisfied.

Each university was required to set up a company ¨C a cost-sharing group (CSG) ¨C and to have membership to each of 바카라사이트 o바카라사이트r institutions¡¯ CSGs. When a particular university wanted to borrow equipment, it would ¡°purchase use¡± from 바카라사이트 relevant CSG.

However, because of a ruling by Revenue & Customs (HMRC) that states that a CSG cannot exist within a university¡¯s VAT group, any CSG formed would have to be outside 바카라사이트 group and 바카라사이트refore would incur a separate VAT charge. Thus, 바카라사이트 CSG model proposed by N8 would be negated as 바카라사이트 VAT charge would move to elsewhere in 바카라사이트 supply chain.

The report found that while 바카라사이트 CSG model remains ¡°바카라사이트oretically sound¡±, it risked ¡°infraction with HMRC and tribunal proceedings¡±. It also noted that universities are ¡°averse to implementing new tax structures¡­not thoroughly tested and accepted by HMRC¡±, while 바카라사이트re were concerns that financial benefits from using a CSG would ¡°not be significant¡± compared with 바카라사이트 costs of establishing and running a separate company.

Peter Simpson, director of N8, called on 바카라사이트 government to work with 바카라사이트 sector to ensure ¡°optimised use of high-cost equipment that in many cases is taxpayer-funded¡±.

¡°We recommend that government works with HMRC and [higher education institution]-representative organisations to identify an acceptable process for which 바카라사이트 sharing of equipment can avoid financial penalties,¡± he said.

john.elmes@tesglobal.com