Fiddling the VAT as a solution to the financial pressure at the Larruperz Centre, which needs to replace two boilers was rejected by Town Councillors at their meeting on Monday.
The Ross-on-Wye community centre had requested a donation to help meet the costs which would be in the region of £26,000 plus VAT. They had suggested that the Town Council could purchase the boilers on their behalf so that they could reclaim the VAT. However, the Clerk pointed out that this is not acceptable as the rules had been changed as so many community groups had asked their councils to make purchases on their behalf so they could reclaim the VAT.
Councillor Phil Cutter pointed out that the Town Council owns the building and therefore they would be making the purchase for their own asset.
Councillor Harry Bramer suggested that the Town Council paid for the boilers as they are a necessary item for their own building. He said:?“The Larruperz is an important community asset, I think we should do this.”
Councillor Bartrum said that what the Larruperz Community Association is asking for is to ‘fiddle the VAT’ by paying for the boilers and accepting a donation towards the costs.
Cllr Bramer said:?“We cannot fiddle the VAT but we can reclaim VAT for something we buy for something we own.”
Cllr Ravenscroft said:?“If the boiler breaks down the Centre would have to close. Councillor Julian Utting also pointed out that they would need more quotes but if they kept the purchase to below £25,000 they would not have to use the council’s official procurement policy.
Cllr Bramer said:?“It is a lot of money which we are responsible for but we are also responsible for the people of Ross who use this centre.”
It was agreed that a working party should be set up including Councillors Julian Gren, Phil Cutter, Daniel Lister and Caroline Bennet to investigate quotes. It was agreed thay they could pay up to a maximum of £25,000 for the new boilers to be installed.See this week’s paper for more stories like this, available in shops and as a Digital Edition now.







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