is VAT payable

kev.s

anyone know if driving schools/motorbike training schools are required to pay vat? i know you have to make a certain amount before being registered, just wondered if they were exempt in some way

ta

InsideInsurance

Why do you think there would be? Driving lessons attract VAT at the standard rate.

https://www.alliance-leicestercommercialbank.co.uk/bizguides/full/driving/parkes-vat.asp

antrobus

kev.s wrote: »

anyone know if driving schools/motorbike training schools are required to pay vat? i know you have to make a certain amount before being registered, just wondered if they were exempt in some way

ta

Yes, driving schools/motorbike training schools are required to charge VAT on their sales. Of course, it's perfectly possible that a specific self-employed one-man-band driving instructor might have a turnover below the registration threshold of £73,000, and could therefore 'avoid' having to charge VAT.

chrismac1

My guess is someone has suggested to the OP that under Schedule 9 Group 6 it might be VAT-exempt, maybe under this sub-section:

2 The supply of private tuition, in a subject ordinarily taught in a school or university, by an individual teacher acting independently of an employer.

After all dance and music lessons are exempt. But driving cars is not ordinarily taught in school or university so it is clearly standard rated.

kev.s

cheers all, was just a bit of a debate amongst a few bikers i know, some say they could claim the vat back for self employed people sitting their test, i did not think this was possible, but was unsure if training schools were required to be vat registered..

System

If it's a one-man school with a turnover below the threshold, then he can't charge VAT?

zygurat789

Clifford_Pope wrote: »

If it's a one-man school with a turnover below the threshold, then he can't charge VAT?

That's not the case at all.
He doesn't have to register, and hence, charge VAT so long as his turnover is less than £73,000 but he may choose to do so.

Practically you do want to register if your customers are VAT registered traders and you do not want to if your customers are not VAT registered traders.
Unless you sell zero rated goods and/or services in which case you should register in all circumstances.

heretolearn_2

I think you are getting the two sides of VAT a bit confused here. Registration has nothing to do with whether you have to pay VAT or not. We all pay VAT if the supplier of what we are buying is VAT registered (very few exceptions, for example charities have a few items that they won't pay VAT on even if the supplier is registered.)

A bike training school may or may not be VAT registered. If it is, those using it will pay the VAT.

Reclaiming VAT can only be done by the VAT registered. It is possible to be VAT registered as a self employed person. So if a self employed person needed to do a course, were VAT registered themselves, and the training company charged them VAT, then they can 'reclaim' the VAT they paid on the course.

So it's possible ...but I'm not sure that's quite what they meant. you wouldn't normally think about specifically reclaiming VAT on one item, if you are VAt registered you reclaim all your VAT as an automatic thing.

Were they thinking of being able to claim the course as a business expense and so reduce their self-employed income tax bill?