VAT benefits in some circumstances

FFL’s service is subject to VAT
Cremation is a VAT-exempt activity

It is not usually possible to recover VAT on costs incurred related to VAT-exempt services.

HOWEVER

There are special rules for Local Authorities and under HMCE’s section 33 refund method, so long as the amount is less than 5% of the total VAT incurred by the Council in the whole of its business and non-business activities during the relevant year, this amount is deemed “insignificant” and therefore recoverable. If the equipment were instead purchased for a single payment and the amount of VAT exceeded the 5% threshold then the VAT would have to be paid in full