Assisted Instrument Purchase Scheme helps save VAT when buying for school pupils
The Assisted Instrument Purchase Scheme is a UK governement programme which allows children at school to obtain musical instruments free of the 17.5% VAT that all music retailers are normally obliged to charge.
Classical Guitars PLUS is very happy to supply instruments under the scheme.
If you think you or your child might be eligible you should talk to your school, music teacher or Local Educational Authority in the first instance. Many Local Education Authorities publish information abtout the scheme on their web site (type "Assisted Instrument Purchase Scheme" [and the name of your country or borough] into Google).
Please note, because some Local Educational Authorities make an administrative charge, much of the benefit to the pupil is actually lost again. Please compare the relative merits of this government scheme as it operates in your locality with our very own Teacher and Student Discount Scheme for the guitar you wish to buy from us. The benefits of both cannot be combined and in some cases our own scheme may offer a greater saving as well as much simpler procedures.
More Information
- Assisted Instrument Purchase Scheme - Government Guidelines
- Assisted Instrument Purchase Scheme - Application Form
- Classical Guitars PLUS Teacher and Student Discount Scheme
Assisted Instrument Purchase Scheme - Government Guidelines
The following text is taken from a document entitled "The Assisted Instrument Purchase Scheme - a Guide for Parents and Schools" published by the Music Industries Association, and approved by HM Customs and Excise.
Introduction
The Assisted Instrument Purchase Scheme enables pupils having music lessons at LEA-maintained schools to purchase musical instruments without paying VAT.
This guide is designed to explain the scheme's rules and procedures to both parents and schools, with the intention of helping as many pupils as possible to benefit.
How does the Scheme Work?
- Once the parent/pupil has chosen an instrument and supplier, they should ask the school to place a formal order with the instrument retailer.
- The parent pays the school the ex-VAT price for the instrument.
- The retailer supplies the instrument to the school.
- The school can reclaim the VAT on the instrument in the usual way. (Local authorities are refunded any VAT they incur in delivering their non-business statutory activities).
- The school then gives the instrument to the student.
What are the Rules?
The general conditions that the student and school must comply with to benefit from the scheme are as follows:
- The student must be at an LEA maintained school.
- The School (or LEA) must place an order for the instrument, take delivery and be invoiced (enabling them to recover the VAT).
- The transaction between the student and school (or LEA) must take place on school (or LEA) premises in a room that is normally used for teaching.
- The instrument must be appropriate to the student's needs and ability.
- The instrument must be portable and taken to school (or LEA premises) on a regular weekly basis for use during lessons (from either the school or local authority's education department).
- The LEA must sell the instrument to the student at or below cost.
- Pupils of independent schools would not ordinarily be able to benefit from the scheme - unless the student receives regular tuition from the local authorities music service.
Operation of the AIPS Scheme
The onus is on LEAs to ensure they comply with all VAT legislation and that all AIPS sales are transacted correctly according to the rules stipulated. For this reason, the operation of the scheme may vary slightly from area to area in order that individual LEA's internal controls are complied with.
In most instances, schools order directly with suppliers but, in some LEAs, the Music Service or a dedicated administration function deals with all AIPS transactions centrally. In such instances, your school or music teacher should know how to take advantage of the scheme.
In addition, some LEAs make a small administration charge to parents for processing the transaction, which obviously involves an amount of work for their school and education finance department.
Assisted Instrument Purchase Scheme - Application Form
You can copy and print out this form and use it to make an application to your school.
| School Name...................................... | Pupil's Name................................................ |
| Parent / Guardian ......................................... | |
| Address | Address |
| Phone........................................................ | |
Dear Music Teacher / Headmaster/Headmistress
I wish to buy a ............................................................................................................................ under the Assisted Instrument Purchase Scheme from Classical Guitars PLUS (Classical Guitars PLUS, Natson Mill, Bow, Crediton, Devon EX17 6JE 01363 881174).
The delivered price including VAT is ................ and excluding VAT is ...................
Delivery to the school: Under the rules of the scheme Classical Guitars PLUS must deliver to the school.
Please arrange for the school or Local Education Authority to purchase this guitar on my behalf.
Signed...................................................................
(Parent / Guardian)
Date................................
Please hand this form when completed to your school.
For more information on guitars available, VAT inclusive and exclusive pricing please phone Classical Guitars PLUS on 01363 881174 or visit the web site www.classical-guitars-plus.co.uk.
