Clement Keys helps mac win back VAT
Accountancy firm Clement Keys has helped the relaunched Midland Arts Centre - now known as mac - to claim back £221,000 in wrongly-charged VAT.
The newly-refurbished mac celebrated an enthusiastic response to its £15 million redevelopment when nearly 30,000 people attended the recent opening weekend celebrations.
But it is also celebrating the VAT windfall, which it has reclaimed from HM Revenue and Customs.
Clement Keys partner Simon Atkins said: “We have advised mac for 10 years and in that time we have seen the redevelopment project take shape from an initial idea to an exciting re-opening weekend.
“It is fantastic to see everybody’s efforts, particularly in fundraising, come to fruition.
“Throughout the closed period we have worked with mac to review their accounting systems and structures and we were able to highlight areas for beneficial changes.
“At the same time, our VAT specialist highlighted the fact that a European Court of Justice Appeal ruling relating to the issue of VAT and cultural exemption would apply to mac and set about submitting a claim for repayment.”
The upshot of the European Court of Justice ruling was that European law had not been correctly implemented in UK legislation.
Admission charges to live performances had been subject to VAT at the standard rate when, in fact, they should have been exempt from VAT.
Subsequent changes to the UK’s VAT legislation as a result of this ruling brought welcome news for many high-profile arts groups in and around Birmingham, including mac.
“During the closure we had the opportunity to reassess how we operate and to put in place new systems and procedures that will enable us to maximise resources and secure cost savings and efficiencies across all areas of our activities,” said Dorothy Wilson, artistic director and chief executive at mac.
“Clement Keys has provided ongoing support throughout the over-haul of our systems and the VAT repayment will help support our ongoing programmes, including exhibitions such as ‘Plug in’ which explores the changing face of Birmingham by bringing together selected artefacts, new artist commissions, documentary and photography.”
Plug-in runs until August 30, 2010.
