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Rural Gigabit Vouchers

D00B

Casual Member
Hi, I hope this is the correct section to post this. We are currently in the process of gathering names for the Openreach Fibre Partnership and am wondering how the gigabit vouchers work with regards to the business stipulation.
can a person who works solely from home claim the higher rate of £3,500. They may not run a business but work for a business solely from home.

Many thanks
 

SamuelC

Casual Member
Pretty sure has to be a registered business, run entirely from home, which would heavily benefit from improved broadband. So working from home, I wouldn't say would count
 

D00B

Casual Member
I'd have thought the same until I read somewhere on here that Mark J had said about home working. Can't for the life of me find it again though
 

SamuelC

Casual Member
I'd have thought the same until I read somewhere on here that Mark J had said about home working. Can't for the life of me find it again though
I don't think working from home counts otherwise there'd be a lot more people trying to use the vouchers
 

D00B

Casual Member
Found the quote by Mark
 

BFG

Regular Member
On a related point,
If a business makes use of a business voucher, are they constrained in any way to only take business grade services from the ISP? Domestic is often preferable.
 

sheephouse

Pro Member
On a related point,
If a business makes use of a business voucher, are they constrained in any way to only take business grade services from the ISP?
I don't think they can count as a business if they take a residential service. Also a lot of ISPs refuse to provide residential services to a business.
 

BFG

Regular Member
If it's a residential premises they are usually OK with it.
I've found ISPs usually don't mind providing a residential contract, which is then expensed to a business. Accountant is fine with it too.

But where the voucher is a third party element, that makes it complicated.
It would be interesting to see the actual terms of a voucher.
 

guy.cashmore

Casual Member
To claim the higher rate £3500 grant the only requirement is that the person making the claim has a UTR tax code and lives at the address. Anyone who is even partly self employed and does a tax return will have this. Also it is NOT necessary for that address to take a 'business' level service when it becomes available, any service that uses the FTTP infrastructure is acceptable.
 

Jim Weir

Casual Member
To claim the higher rate £3500 grant the only requirement is that the person making the claim has a UTR tax code and lives at the address. Anyone who is even partly self employed and does a tax return will have this. Also it is NOT necessary for that address to take a 'business' level service when it becomes available, any service that uses the FTTP infrastructure is acceptable.
They must also pay the additional £700 VAT on the business voucher - which can be reclaimed if VAT registered or paid personally in self employed and not VAT registered
 

candlerb

Casual Member
Hi, I hope this is the correct section to post this. We are currently in the process of gathering names for the Openreach Fibre Partnership and am wondering how the gigabit vouchers work with regards to the business stipulation.
can a person who works solely from home claim the higher rate of £3,500. They may not run a business but work for a business solely from home.
Are you talking about the DCMS Rural gigabit vouchers? You have to run your own business from home to qualify for the business vouchers. It's explained here:

"You will be asked to provide evidence of your status as a SME or sole trader."

There is a link to the full terms and conditions, which say:

"Documentation we will accept includes: VAT registration; Charity Registration: HMRC notification; sole trader UTR number; certification of incorporation (limited companies); business bank account statement issued within the last three months; non-domestic rates reference. Other documentation, such as business-related utility bills, may be acceptable in certain circumstances if combined with other documentation."
 

candlerb

Casual Member
They must also pay the additional £700 VAT on the business voucher - which can be reclaimed if VAT registered or paid personally in self employed and not VAT registered
There is no "VAT to pay" on the business voucher itself. However a business voucher cannot be used to pay VAT.

Example 1: installation cost £5000+VAT (=£6000). Voucher £3500. You will be left to pay £1500 of the base cost plus the whole VAT of £1000, total £2500. If you are VAT-registered you can claim back the £1000 VAT.

Example 2: installation cost £2500+VAT (=£3000). The voucher can be used to pay the £2500 installation, but you still have to pay the £500 VAT. If you are VAT-registered you can claim back the £500 VAT.
 

Jim Weir

Casual Member
There is no "VAT to pay" on the business voucher itself. However a business voucher cannot be used to pay VAT.

Example 1: installation cost £5000+VAT (=£6000). Voucher £3500. You will be left to pay £1500 of the base cost plus the whole VAT of £1000, total £2500. If you are VAT-registered you can claim back the £1000 VAT.

Example 2: installation cost £2500+VAT (=£3000). The voucher can be used to pay the £2500 installation, but you still have to pay the £500 VAT. If you are VAT-registered you can claim back the £500 VAT.
No ok, the VAT is on the connection charge rather than the voucher, however having dealt with several hundred of these, to the beneficiary they see it as there is a VAT bill to pay with a business voucher, but there is not with a residential voucher.
 

guy.cashmore

Casual Member
Are you talking about the DCMS Rural gigabit vouchers? You have to run your own business from home to qualify for the business vouchers. It's explained here:

"You will be asked to provide evidence of your status as a SME or sole trader."

There is a link to the full terms and conditions, which say:

"Documentation we will accept includes: VAT registration; Charity Registration: HMRC notification; sole trader UTR number; certification of incorporation (limited companies); business bank account statement issued within the last three months; non-domestic rates reference. Other documentation, such as business-related utility bills, may be acceptable in certain circumstances if combined with other documentation."
All that is needed is a UTR code.
 

guy.cashmore

Casual Member
They must also pay the additional £700 VAT on the business voucher - which can be reclaimed if VAT registered or paid personally in self employed and not VAT registered
Not correct, CFP schemes are zero rated for VAT, I can send you a copy of my invoice if you like Jim.
 

guy.cashmore

Casual Member
That conflicts with gov.uk advice. Do you have a citation re this please that we can pass to our CFP members as official advice?
I can't say I've read the latest advice, but when we all applied for our vouchers 12 months ago, the only requirement on the application form to obtain the higher value business vouchers was providing a UTR code.
 

candlerb

Casual Member
UTR as a sole trader (i.e. self-employed) should be OK, although they may ask for additional evidence.

I very much doubt that a personal UTR that doesn't include self-employment will be usable for a business voucher.
 
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