E-scéal 316 - RCTs & VAT returns – Are they a core part of your role as a leader of learning?
- Published: 05 October 2012
Schools are now obliged by law to process VAT returns for a range of works carried out on building, extensions, refurbishments, repairs etc. These taxes are known as Relevant Contract Taxes (RCTs). Responsibility for processing of RCTs rests with your Board of Management (BoM).
Referring to the Department of Education & Skills publication - Constitution of Boards and Rules of Procedure 2011: page 21 - it states clearly that the principal or teacher nominee to the board shall not be the treasurer.
This directive is there for a very good reason. It provides essential protection for the principal and the elected teacher to the BoM, by creating a distance between accounting for finances and employees of the board. By extension, IPPN recommends that principals should not, under any circumstances, engage with RCTs.
As principal teacher, you are aware of the growing responsibilities being placed on your role in relation to the quality of teaching and learning - School Self-Evaluation, raising standards of literacy and numeracy, amongst many others. In addition, 7 out of 10 principals have full-time class teaching responsibilities. No matter how efficient the process may be deemed to be, it will inevitably add to the already excessive administrative workload which takes you away from your core responsibility - leading and managing teaching and learning in your school. This is a professional issue. There is consensus in the education sector that the role of principal is critical in leading, motivating, affirming and inspiring teachers and children to continuously strive for improvement. This cannot be achieved if principals are being distracted by spending time on additional administrative tasks.
In most organisations, filing of VAT returns is carried out by an accounts administrator. In the event that your BoM does not have either the skills or the capacity to deal with RCTs on an ongoing basis, we recommend that you suggest to your board that an appropriate professional is retained to carry out the task. We are aware that some BoMs have already retained these services for a cluster of schools.
A series of information sessions about RCTs are taking place regionally. IPPN recommends that in your role as principal, you advise the chairperson to arrange for other relevant board members to attend. If for any reason you have already undertaken responsibility for RCTs, we suggest that you consider the points above and relay your thoughts to your BoM and/or your relevant management representative body.
Is sinne le meas
Seán Cottrell & Gerry Murphy
