High Clarity Accountants

TAX TIP OF THE WEEK – VAT savings for kids that learn a musical instrument

So your child has decided they want to learn the trumpet as part of their music lessons at school. As schools aren’t in the habit of buying instruments for pupils, they could help you save on the VAT element of this purchase.

This is known as the assisted instrument purchase scheme (AIPS). The school will arrange the purchase of the instrument and as they can reclaim the VAT element can then in effect sell it on to you at the net price.

Although this will save you one-sixth of the price there are some conditions in that they must take it to school and receive tuition to play it. Also this only works for state schools as privately schools cant normally recover VAT.

For more tax strategies download our 71 ways to save tax checklist https://bit.ly/2YQbhvr

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