Why is Wirral Council being charged £49,047.35 a month for VAT on school meals by Edsential Community Interest Company?
Why is Wirral Council being charged £49,047.35 a month for VAT on school meals by Edsential Community Interest Company?
David Armstrong (right) Assistant Chief Executive (a company director of Edsential Community Interest Company) at a recent meeting of the Wirral West Constituency Committee (30th June 2016)
Updated 15#47;8#47;16 following responses by Edsential and Wirral Council
Below is an invoice from Edsential Community Interest Company to Wirral Council for school meals in December 2015 and operation charges from December 2015 to March 2016.
Edsential invoice to Wirral Borough Council 2nd January 2016 Wirral Schools meals and operation charges £404084.10
I’m puzzled as to why the school meals element for £245,236.75 attracts VAT at 20%, when Her Majesty’s Revenue and Custom’s guidance note on VAT on school meals would seem to (at least by my reading) state that school meals (apart from those to staff and visitors) are exempt from VAT.
Therefore I’m puzzled why this element of the bill attracts VAT of £49,047.35, when surely the amount should be different than this (if it was just for staff and visitor meals)?
However Wirral Council’s paid the VAT on the school meals charge from Edsential. This is per a month (and some of December no school meals will be served because of the Christmas holidays), so over the year it means the VAT could be a few hundred thousand?
This is well below the level of materiality or triviality which is why it probably doesn’t get picked up routinely, after all Edsential is a relatively new arrangement.
But when the taxpayer is funding free school meals, what’s the correct tax situation?
Both Wirral Council and Edsential have been in touch since this article was written and their responses are below.
Wirral Council reclaim the VAT back from HMRC and state that no VAT is charged to pupils for school meals, Edsential claim the VAT they charge Wirral Council is correct.
Updated: 12/8/16 some replies on Twitter state that if Wirral Council was providing these services to schools then the catering services would be exempt from VAT, however the issue of whether schools are exempt from paying VAT on catering services are in related to a limited company owned by two local councils rather than the Wirral Council itself.
Updated 15/8/16:
Ian McGrady (Managing Director) of Edsential has responded with, “As a matter of policy we do not comment on commercially confidential relationships with our customers. However, I can confirm that our management of VAT complies with all HMRC guidance appropriate to our status as a Community Interest Company.”
Peter Molyneux of Wirral Council confirmed that when Metro Catering (an arm of Wirral Council) were providing a school meals service then VAT was not chargeable. Now Wirral Council contract with Edsential, Edsential charge Wirral Council VAT which Wirral Council then claim back from HMRC.
So Wirral Council do pay the VAT, but then claim it back on their monthly VAT return.
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What is in 13 Merseytravel/Liverpool City Region Combined Authority contracts and hundreds of pages of invoices relating to the 15/16 financial year?
What is in 13 Merseytravel/Liverpool City Region Combined Authority contracts and hundreds of pages of invoices relating to the 15/16 financial year?
Councillor Steve Foulkes (Labour) (right) speaking at a recent meeting of the Birkenhead Constituency Committee (28th July 2016) | Councillor Pat Cleary (Green) (left) listens. Cllr Steve Foulkes is Merseytravel’s Lead Councillor for Finance and Strategy.
Merseytravel and the Liverpool City Region Combined Authority were the last public body to respond to my request to inspect and receive copies during the 30 working day period which was originally supposed to run starting on the 1st July 2016.
This was interesting as the 30 working day period isn’t allowed to start until the public notice is published!
However the FOI request went to an internal review and Julie Watling of Merseytravel responded on the 11th August stating that, “However I had been mistakenly informed that the information was not on the website, when in fact it was available at the following links:-”
But then, is it reasonable to expect an organisation to know what’s published on its own website and to answer Freedom of Information Act requests accurately or am I asking too much?
Which is the correct answer?
However the information (or to be more accurate part of the information) I requested arrived in the post yesterday (postage around £6.20 as it was special delivery guaranteed by 1pm) with a covering letter from a trainee solicitor and DVD.
Below is what was on the DVD. I did get a further email yesterday with a contract that had been mistakenly left off the DVD too.
Although the internal review clears up the issue about the public notice on Merseytravel’s website, for the Liverpool City Region Combined Authority it should’ve been published on the Liverpool City Region Combined Authority’s website, not Merseytravel’s.
So part of my objection I sent to the auditors yesterday still stands.
The invoices are split by the thirteen accounting periods that Merseytravel used during the 2015 2016 financial year, although why spoil the surprise when you can read for yourself below?
There are some interesting matters to be gleaned from the invoices and contracts, however I don’t have the time at present to blog about them in detail.
Invoices 2015 to 2016 financial year (Merseytravel and Liverpool City Region Combined Authority).
What are 10 invoices paid by Merseyside Recycling and Waste Authority totalling £4,758,470.23 for?
What are 10 invoices paid by Merseyside Recycling and Waste Authority totalling £4,758,470.23 for?
Below are ten A4 images of invoices I requested during the 2015-16 audit of Merseyside Waste Disposal Authority (that goes by the name of Merseyside Recycling and Waste Authority).
They are in order from Mersey Waste Holdings Ltd, Veolia ES Merseyside & Halton Limited, FCC Recycling (UK) Limited, Wirral Council, JLT Speciality Limited and Liverpool City Council.
Some are for payments made to do with contracts, the one with Wirral Council is to do with a loan (MRDF stands for Merseyside Residual Debt Fund which MWDA’s share of the former Merseyside County Council’s debts), insurance and business rates to Liverpool City Council for the Gilmoss Waste Transfer Station in Stonebridge Lane.
Amounts for these invoices are for £2,136,797.83, £1,253,141.93, £650,990.21, £472,906.96, £182,600, £37,741.30 and £24,892 (total £4,758,470.23).
I will point however that the costs of dealing with waste on these invoices is at the county level of Merseyside (possibly with Halton added too). Wirral Council’s share will be a fraction of what the total costs are).
Matters involving the current consultation by Wirral Council on food waste and changes to the green bin collection were recently the subject of a call in public meeting (26th July 2016) when opposition councillors requested that the Cabinet decision be reviewed. You can watch footage from that meeting below which discusses the proposed changes to the green bin collections and proposed new food waste collection.
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Environment Overview and Scrutiny Committee (Wirral Council) 26th July 2016 Call in of Cabinet decision on consultation on green bins and food waste
0 Merseyside Waste Disposal Authority Mersey Waste Holdings Ltd £2136797.83 Landfill Services Contract Page 1 of 1 February 20151 Veolia ES Merseyside and Halton Limited £1253141 93 Waste Management and Recycling Contract Page 1 of 2 March 20152 Veolia ES Merseyside and Halton Limited £1253141.93 Waste Management and Recycling Contract Page 2 of 2 March 20153 Veolia ES Merseyside and Halton Limited £6509901.21 Waste Management and Recycling Contract Page 1 of 2 February 2015 min4 Veolia ES Merseyside and Halton Limited £6509901.21 Waste Management and Recycling Contract Page 2 of 2 February 20155 FCC Recycling (UK) Limited £472906.96 Interim Waste Services Management Agreement Page 1 of 1 February 20156 Wirral Council £182600 MRDF 2nd instalment 14 15 Page 1 of 17 JLT Speciality Limited £37741.30 Comined Liability Insurance Page 1 of 18 Liverpool City Council £248965 non domestic rates Gilmoss Waste Transfer Station Page 1 of 29 Liverpool City Council £248965 non domestic rates Gilmoss Waste Transfer Station Page 2 of 2
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Should Cllr Denise Roberts pay back £3.80 claimed in postage to Merseyside Fire and Rescue Authority?
Should Cllr Denise Roberts pay back £3.80 claimed in postage to Merseyside Fire and Rescue Authority?
Councillor Denise Roberts (Chair, Standards and Constitutional Oversight Committee at Wirral Council) 6th July 2016
Below is a £3.80 claim made by Cllr Denise Roberts when she was on the Merseyside Fire and Rescue Authority for postage.
Apparently some papers for a Merseyside Fire and Rescue Authority meeting were sent to her with the incorrect postage on so she put in an expense claim (on the travel and subsistence form) for £3.80.
The receipt from Royal Mail is included.
Let’s hope Merseyside Fire and Rescue Service know to put the right postage on mail in the future!
Councillor Denise Roberts £3.80 postage 29th June 2015 Page 1 of 2 resizedCouncillor Denise Roberts £3.80 postage 29th June 2015 Page 2 of 2 resized
She got somebody else working in Merseyside Fire and Rescue Services called Nicholas Pitcher to sign the form on her behalf.
Her basic allowance of an extra £8,070 for being on the Merseyside Fire and Rescue Authority is supposed to cover such incidental expenses such as this £3.80 postage but Cllr Denise Roberts chose to claim it back.
At the time of this claim Cllr Denise Roberts was Chair of Merseyside Fire and Rescue Authority’s Audit Sub-Committee (which is also the Committee at Merseyside Fire and Rescue Authority that dealt with complaints about councillors).
Should Cllr Roberts pay the £3.80 back? Please leave a comment giving your view.
Cllr Denise Roberts stopped being on the Merseyside Fire and Rescue Authority in May 2016 when Wirral Council chose a different councillor to represent the Labour Group from Wirral.
Cllr Denise Roberts is now Chair of Wirral Council’s Standards and Constitutional Oversight Committee which has oversight of complaints made about councillors.
What’s in Merseyside Fire and Rescue Service’s planning application for a new fire station in Saughall Massie?
What’s in Merseyside Fire and Rescue Service’s planning application for a new fire station in Saughall Massie?
Dan Stephens (Chief Fire Officer) answers questions at a public consultation meeting in Saughall Massie to discuss proposals for a new fire station
The planning application for a new fire station in Saughall Massie has been made to Wirral Council by Merseyside Fire and Rescue Service.
The application number is APP/16/00985 and the description is, "A single storey two bay community fire station incorporating operational and welfare accommodation, offices and meeting space, external drill and training facilities and associated car-parking." at "land adjacent to SAUGHALL MASSIE ROAD, SAUGHALL MASSIE" .
The planning application form for this is 9 A4 pages long so I will summarise the details below. Further details are expected to be published on Wirral Council’s website in the near future.
You can make a comment supporting or objecting to this planning application on Wirral Council’s website which also contains the documents that are part of the planning application.
It is expected after a period of consultation with the public for the planning application to be decided by Wirral Council’s Planning Committee in October 2016.
1. Applicant Name, Address and Contact Details
Mr Colin Schofield
Merseyside Fire & Rescue Service
Merseyside FRS HQ
Bridle Road
Bootle
L30 4YD
2. Agent Name, Address and Contact Details
Mrs Dawn Coward
Ryder Architecture
Innovation Centre
131 Mount Pleasant
Liverpool
United Kingdom
L3 5TF
A single storey two bay community fire station incorporating operational and welfare accommodation, offices and meeting space, external drill and training facilities and associated car-parking.
Has the building, work or change of use already started? No.
4. Site Address Details
Land of Saughall Massie Road
Saughall Massie
Upton
Wirral
Easting 325469
Northing 388515
5. Pre-application advice
Has assistance or prior advice been sought from the local authority about this application? Yes
Officer name:
Mrs Sheila Day
Department of Regeneration and Planning
04/11/2015
Details of the pre-application advice received:
Following request for pre-application advice and meetings with planning case officer and colleagues, a detailed response was received and covered the following:
– Advice on scale, massing and positioning of the building.
– Advice on landscaping
– Advice on highway interfaces and parking
– Review of ground investigation.
– Request for further particulars that justified the location of the fire station and evidence of community consultation
– Request for details of training procedures and frequency
6. Pedestrian and Vehicle Access, Roads and Rights of Way
Is a new or altered vehicle access proposed to or from the public highway? Yes
Is a new or altered pedestrian access proposed to or from the public highway? Yes
Are there any new public roads to be provided within the site? No
Are there any new public rights of way to be provided within or adjacent to the site? No
Do the proposals require any diversions/extinguishments and/or creation of rights of way? No
If you answered Yes to any of the above questions, please show details on your plan/drawings and state the reference of the plan(s)/drawings(s)
Short description of Other Fire appliances (note: within appliance bay)
11. Foul Sewage
Please state how foul sewage is to be disposed of:
Mains sewer
Are you proposing to connect to the existing drainage system? Yes
If Yes, please include the details of the existing system on the application drawings and state references for the plan(s)/drawing(s):
28042 Drainage Assessment and Strategy REV 01.pdf
12. Assessment of Flood Risk
Is the site within an area at risk of flooding? No
Is your proposal within 20 metres of a watercourse (e.g. river, stream or beck)? No
Will the proposal increase the flood risk elsewhere? No.
How will surface water be disposed of? Sustainable drainage system Main sewer
13. Biodiversity and Geological Conservation
Is there a reasonable likelihood of the following being affected adversely or conserved and enhanced within the application site, OR on land to or near the application site:
a) Protected and priority species
No
b) Designated sites, important habitats or other biodiversity features
No
c) Features of geological conservation importance
Yes, on land adjacent to or near the proposed development
14. Existing Use
Please describe the current use of the site:
Vacant land
Is the site current vacant? Yes
If Yes, please describe the last use of the site: Vacant grass land
Does the proposal involve any of the following? If yes , you will need to submit an appropriate contamination assessment with your application.
Land which is known to be contaminated? No
Land where contamination is suspected for all or part of the site? No
A proposed use that would be particularly vulnerable to the presence of contamination? No
15. Trees and Hedges
Are there any trees or hedges on the proposed development site? Yes
And/or: Are there trees or hedges on land adjacent to the proposed development site that could influence the development or might be important as part of the local landscape character? Yes
If Yes to either or both of the above, you may need to provide a full Tree Survey, at the discretion of your local planning authority. If a Tree Survey is required, this and the accompanying plan should be submitted alongside your application. Your local planning authority should make clear on its website what the survey should contain, in accordance with the current ‘BS5837: Trees in relation to design, demolition and construction – Recommendations’.
16. Trade Effluent
Does the proposal involve the need to dispose of trade effluents or waste? No
17. Residential Units
Does your proposal include the gain or loss of residential units? No
18. All Types of Development: Non-residential Floorspace
Does your proposal involve the loss, gain or change of use of non-residential floorspace? Yes
Total gross new internal floorspace proposed (including changes of use) (square metres) 737
Use Class/type of use: Other
19. Employment
If known, please complete the following information regarding employees:
Proposed employees 10 (full-time)
20. Hours of Opening
No Hours of Opening details were submitted for this application
21. Site Area
What is the site area? 4,950.00 sq. metres
22. Industrial or Commercial Processes and Machinery
Please describe the activities and processes which would be carried out on the site and the end products including paint, ventilation or air conditioning. Please include the type of machinery which may be installed on site:
Compressors for refilling and testing of breathing apparatus.
Hydraulic cutting devices for car cutting during road traffic collision simulation.
Is the proposal for a waste management development? No
23. Hazardous Substances
Is any hazardous waste involved in the proposal? No
24. Site Visit
Can the site be seen from a public road, public footpath, bridleway or other public land? Yes
If the planning authority needs to make an appointment to carry out a site visit, whom should they contact? (Please select only one)
The agent
25. Certificates (Certificate B)
Certificate of Ownership – Certificate B
Town and Country Planning (Development Management Procedure) (England) Order 2015 Certificate under Article 14
I certify/ The applicant certifies that I have/the applicant has given the requisite notice to everyone else (as listed below) who, on the day 21 days before the date of this application, was the owner (owner is a person with a freehold interest or leasehold interest with at least 7 years left to run) and/or agricultural tenant (“agricultural tenant” has the meaning given in section 65(8) of the Town and Country Planning Act 1990) of any part of the land or building to which this application relates.
Owner/Agricultural Tenant
Wirral Metropolitan Council
Brighton Street
Wallasey
CH44 8ED
15/7/2016
Mrs Dawn Coward
AGENT
15/7/2016
26. Declaration
I/we hereby apply for planning permission/consent as described in this form and the accompanying plans/drawings and additional information. I/we confirm that, to the best of my/our knowledge, any facts stated are true and accurate and any opinions given are the genuine opinions of the person(s) giving them.
15/7/2016
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