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Am I VAT Exempt?

Pre-school sports activities

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We give children a positive introduction to the sport by teaching high-quality football/Rugby skills in a friendly, pressure-free environment. There are four different classes tailored specifically to the needs of children between 18 months and 7 years of age. Pre-school classes’ get young children involved in and enjoy the sport while shedding some weight off and avoid obesity.

As per our cash flow forecast, our company turnover for first 12 months would be £115K.

Am I VAT exempt?

Replies (12)

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RLI
By lionofludesch
20th Jul 2017 21:02

Have a look at this first

https://www.gov.uk/government/publications/vat-notice-70145-sport

and then come back with a bit more detail on what you actually provide.

Pre-school ? Seven years of age ? Are you in the UK ?

A key question is - are you an eligible body?

Thanks (1)
By mrme89
20th Jul 2017 21:07

You ask if you are VAT exempt but mention company several times.
I think you need to address who is providing the service.

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Replying to mrme89:
RLI
By lionofludesch
20th Jul 2017 21:19

mrme89 wrote:

You ask if you are VAT exempt but mention company several times.
I think you need to address who is providing the service.

Good point.

Sole trader, we, I, our company ..... which is it ?

Thanks (1)
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By KAQ23
20th Jul 2017 21:54

Thank you, we will be trading as Ltd, currently we are 2 partners (directors/shareholders). We aim to employ more staff when business starts to grow; there is gap in the market to provide training to young / preschool children to learn about sport especially football.

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Replying to KAQ23:
RLI
By lionofludesch
20th Jul 2017 22:06

So you're not a sole trader after all.

I'm tipping that your company isn't an eligible body, in which case you'll be struggling to claim exemption.

But - hey - you're only giving us sawdust to plait.

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By pacta
21st Jul 2017 01:09

Well I for one am very interested in attending the cup final of the 18 month old Rugby that you have. How much are the tickets? Will it be televised?

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Replying to pacta:
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By rhino83
21st Jul 2017 09:51

I'm sure it will be more interesting than watching Wales in the Autumn internationals.

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By mbuffery
21st Jul 2017 09:14

If you operate as a limited company, your services will be taxable once you exceed the VAT threshold. However, if you operate as a partnership, services provided by the partners fall within the exemption for private tuition. However, this exemption does not extend to services provided by employees/subcontractors working for you, so once the value of services provided by employees/ subcontractors exceeds £85k, you will have to register for VAT, account for VAT on that income. I recommend you take specialist advice if you decide to use a partnership structure.

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Portia profile image
By Portia Nina Levin
21st Jul 2017 09:50

I see all the VAT experts get up early.

It may well be exempt, as the supply of care, irrespective of whether you are an eligible body.

Presumably any old Tom, Dick and Harry can't just set up and provide this sort of thing, and you need to be regulated by someone. Who?

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Replying to Portia Nina Levin:
RLI
By lionofludesch
21st Jul 2017 10:01

Portia Nina Levin wrote:
Who?

Whom. Surely.

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By Portia Nina Levin
21st Jul 2017 10:07

BANG!

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Replying to Portia Nina Levin:
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By gilderda
21st Jul 2017 10:54

IIRC if you're offering an activity-based club rather than say a creche or nursery, there's no requirement to register with Ofsted and if it operates for less than two hours a day you don't need to go on the Early Years Register either.

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