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Driving Schools acting as an agency

EllabobbinEllabobbin Feels At HomeRegistered Posts: 92
Good Afternoon All,

I have a new client who runs a driving school, hopefully acing as an agent for driving instructors since that will mean the income for vat purposes is the booking fee which is retained by them and not the fee paid by the pupils which includes the portion paid to the instructor.

If anyone has experience with this kind of client, I would be most grateful if any input on how to best structure the arrangements to ensure they don't fall foul of the vat regulations for such driving schools and also how the accounting will work.

Thank you in anticipation.

Answers

  • SandyHoodSandyHood Font Of All Knowledge Registered, Moderator Posts: 2,034
    Ella

    Very many years ago I did some work for a mobile DJ. He had the same issue. He acted as a booking agent for other DJs. A client would pay him to book the DJ and then settle with the DJ they actually used on the night.

    Taxi firms use self-employed drivers who pay a rental to use the radio which gives them the clients.

    It is all broadly the same. I would warn your client that his driving instructors are independent and will no doubt have clients they gain directly. He may not find any stay with him long. If he incurs a lot of advertising cost he might find it hard to recover the cost.
    I can imagine your client sees your role as just doing his books and tax returns. If you can step out of that to challenge this idea of being the agent booking other driving instructors you might force him to actually talk through how it would work. My initial thought is that it will be work for a low return.

    I hope this is a help, even if it doesn't address your question directly.

    Sandy
    Sandy
    [email protected]
    www.sandyhood.com
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