VAT on private tuition provided by ltd co

anniem

Going to meet potential new client on Monday. Ltd Co doing private tuition.

From my investigations I think that sole traders and partnerships are exempt from charging VAT on private tuition, however I believe that Ltd Co's should be accounting for VAT.

Got a horrible feeling that they haven't been for the last 17 months!

Any knowledge/advice before Monday?

Anna

payrollpro

Anniem,

Educational services provided by a charitable body are exempt from VAT by virtue of Sch 9, Group 6, VATA1994. I only know this because I provide educational services to the AAT and have to be partially exempt because of it.

You are right that an individual teacher working as a sole trader or as a partner is not providing business services as long as they are teaching what would normally be taught in a school. They are classed as exempt so no output tax or provision and no claim of input tax on purchases.

However, private tuition from a private company or where the sole trader hires another teacher then those supplies are business and taxable. I suggest you look at Notice 701/30(January 2002) for the full set of statements.

Payrollpro

anniem

Fab, thanks Payrollpro!