Policy

Sales by the University to employees and members of the University must be at a rate that covers the full cost to the University. This includes not only the direct costs of the goods purchased, but also an allowance for processing costs.

Procedure

• The employee must reimburse the University for any goods purchased at the earliest opportunity and before the University is required to pay the supplier.
• Charges will be liable to VAT unless an item is zero rated in its own right (eg books).
• Any sales made at undervalue (including where no charge is made) to employees or their family must be approved in writing by the Head of Department with an explanation as to the circumstances which make such an arrangement beneficial to the University. It is not anticipated that there will be many if any circumstances where this will arise.

Further details on VAT issues and coding for private purchases recharges can be found on the VAT and other Taxes [1] web pages.

Tax implications

Sales to staff are not a taxable benefit provided that the full cost is recovered from the individual. If for any reason this is not the case the transaction is reportable on P11D as a taxable benefit.