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Policy, regulation and procedures
Financial regulations, procedures, VAT regulations, managing income.
Financial regulations
To conduct its business efficiently the council needs to ensure that it has sound financial management. Part of this process is the establishment of financial regulations which set out the council's financial rules. These rules are set out within the Financial Standing Orders.
These rules apply to all council staff including contractors, consultants and agency staff acting on behalf of the council. These rules must be adhered to at all times as breaches of the council's own rules and procedures could place the council at significant risk of reputational damage, legal challenge or financial loss.
VAT regulations
VAT is a broadly based tax that is levied on both goods and services and is a significant factor in the finances of Local Authorities.
Cumberland Council is registered for VAT and can therefore recover the majority of VAT that it pays to suppliers (from HM Customs and Excise), but it must also levy VAT on its income (where appropriate) and pay over to HM Customs and Excise.
It should be remembered that when accounting for VAT, the main burden of responsibility falls upon the supplier of goods and services, rather than the purchaser to assess VAT liability. However, the purchaser is responsible for recovery, when entitled (not payments for 3rd parties), and maintaining records to substantiate claims made.
HM Customs and Excise have introduced substantial financial penalties for VAT errors. Therefore, it is essential that Cumberland Council does not expose its finances to penalties and interest charges due to lack of knowledge or wrongful application of the VAT legislation for both purchases and income.
The VAT Liabilities (Sales and Income) Guidance Notes (PDF 554kb) are aimed at helping this process, any uncertainties should be directed to the contacts below.
Contact:
Emma Tiffin
Email: emma.tiffin@cumbria.gov.uk
Fees and charges (manage income)
Each year council agrees the fees and charges that will be levied over the coming financial year. This is in the form of the fees and charges schedule (PDF 161kb).
Increases to fees and charges each year are linked to inflation and are agreed each year by full council. Some fees and charges are statutory and therefore any increases are determined by Government.
The council has a fees and charges policy that is being renewed to encompass not only the principles of what and how to charge for services but also the mechanisms for income collection and management controls.