A WORCESTER-based VAT consultancy claims to have saved an organisation more than £1.5m in payments to Customs & Excise.

Liaison VAT Consultancy, in Vincent Road, was approached by the Coal Industry Special Welfare Organisation (CISWO) when it was awarded a £10m lottery grant to construct 12-buildings.

"The CISWO was aware of the danger of starting building activity that could involve the payment of VAT at the standard rate of 17.5 per cent," said Liaison's Tony Bartle.

"It would have been very easy for CISWO to fall into the VAT trap and lose more than £1.5m of their lottery windfall in payments to Customs & Excise.

"As it was, we were asked to become involved from day one, so we were able to scrutinise the drawings of the proposed buildings, as well as the business plans, both of which have substantial bearings on whether or not VAT has to be paid or may be reclaimed."

Mr Bartle said the company's main objective had been to maximise VAT efficiency on the buildings, which included social and community halls, meeting rooms, games areas and sports facilities. "Either by ensuring the construction of the actual premises did not attract the standard rate of VAT or by stipulating the manner in which the premises were to be used when completed, to ensure VAT recovery," he said.