Online teaching/coaching and VAT

artyhirst

Since Covid I have moved my business from teaching/coaching in-person to teaching online; I am creating videos that students watch via specialist teaching platform, with downloadable pdf's. Its remarkably profitable but I have been informed that these are liable for VAT, as they do not include 'live tutor support' , they are classed as digital services. I would like to extend my range of courses but avoid registering for vat as its simply too complicated! But I am struggling to get a  clear definition of is what gov.uk call 'live tutor support'. Does an online forum where I can be asked questions count, or the opportunity to email me, or the occasional live q&a session? Any of these would be easy to bolt onto my current format, but to keep a good work/life balance I want as little interaction as possible...Advice welcome   ( I've written to HMRC but no reply.....)

unholyangel

Are you an eligible body? 

sheramber

https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers

artyhirst

unholyangel, no I'm not an eligible body... self employed coach. 
Sheramber yes that's where this comes from "Online course consisting of pre-recorded videos and downloadable PDFs plus support from a live tutor" .... but what is 'support from a live tutor" ?

nick74

Is your turnover likely to exceed the £85000 annual VAT registration threshold? If not then you don't need to register for VAT, regardless of what you sell.

Pennywise

nick74 said:

Is your turnover likely to exceed the £85000 annual VAT registration threshold? If not then you don't need to register for VAT, regardless of what you sell.

True if all customers are in the UK, but if any customers are in other EU countries, then the OP may need to register and pay VAT in those countries (or join the VAT European one stop scheme).

oldbikebloke

i suggest you wait for HMRC to reply since, as they say, These examples are only illustrations and do not give a comprehensive and definitive list of what is considered to be a digital service. 

FWIW since the only difference between standard rated and exempt education is "plus support from a live tutor" I would assume that takes its natural meaning: you give a tutorial where both you and the tutee are present (online) in real time and engage with each as you would face to face.

Clearly the few words used do not give any basis for assessing how much "support" is required to convert a course into exempt. A 1 hour tutorial on a course expected to require 10 / 50 / 100 hours of learning? Who knows.

Vat and education is a very specialist area and I doubt many accountants would be able to advise with conviction. 

artyhirst

nick74 said:

Is your turnover likely to exceed the £85000 annual VAT registration threshold? If not then you don't need to register for VAT, regardless of what you sell.

Yes... its been remarkably profitable!! 

artyhirst

Pennywise said:

nick74 said:

Is your turnover likely to exceed the £85000 annual VAT registration threshold? If not then you don't need to register for VAT, regardless of what you sell.

True if all customers are in the UK, but if any customers are in other EU countries, then the OP may need to register and pay VAT in those countries (or join the VAT European one stop scheme).

Yes, could easily the threshold by next April, but I'm pulling back because of this which is crazy! ...and yes aware of the minefield as customers are all over the world and I have to provide evidence of point of use... difficult with just an email address .  

artyhirst

oldbikebloke
FWIW since the only difference between standard rated and exempt education is "plus support from a live tutor" I would assume that takes its natural meaning: you give a tutorial where both you and the tutee are present (online) in real time and engage with each as you would face to face. 

Thanks; The problem is I have well over 250 students worldwide sign up to each course... 1-2-1  tutorial time would be impossible! 

oldbikebloke

artyhirst said:

oldbikebloke
FWIW since the only difference between standard rated and exempt education is "plus support from a live tutor" I would assume that takes its natural meaning: you give a tutorial where both you and the tutee are present (online) in real time and engage with each as you would face to face. 

Thanks; The problem is I have well over 250 students worldwide sign up to each course... 1-2-1  tutorial time would be impossible! 

oh come on, not even my Oxford college does 1-1 tutorials
have you looked at what your competitors offer? Bet it isn't 1-1