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CASC VAT advice required

CASC VAT advice required

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I have recently taken on doing the books for a local CASC.  They have a membership scheme.

They have recently provided a set of training evenings for members and nonmembers (charged at a higher premium).  This has been organised through the CASC who have collected the income, but provided by an external instructor.  The instructor has now billed for the income from the course less an amount for room hire.

If we had simply hired the room to her, we would have charged VAT on the hire.  Training provided by the CASC normally is treated as exempt for members and standard rated for nonmembers, and the instructor is paid a fee for runningthe class (regardless of the number of trainees).  However, in this case, we have been billed for the full amount taken, so our only income will be the room hire.  However, since the instructor is not VAT registered, they have charged us for the full amount:

3x nonmembers @ £54, 7X members @£50 less £80 room hire = £428, billed on a single invoice  We have taken £508 in gross income.  

Please could anyone advise :

a) if we can continue to treat members training as exempt in these circumstances, or whether that too should be standard rated?

b) if I should gross up for the room hire, or whether I can simply treat the net invoice from the supplier as a total supply invoice, effectively treating the roomhire as a discount?

Thanks in advance for any assistance

Replies (3)

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By maxaca
14th Dec 2015 18:47

Your question seems to contradict itself
Who is making the supply of what?
Is the instructor making the supply but hiring a room from the casc or is the casc supplying the course but hiring the instructor?
You should clarify whether the casc is acting as agent collecting the course fees on behalf of the instructor or whether they are being collected on its own behalf.
Once that is established then the VAT treatment should follow.
Is the course in connection with or furtherance of the casc activities ?

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By aland
14th Dec 2015 23:29

Either way if you get none of the course fees (just the room hire), there is nothing to (not) charge vat on. 

Unless you are not required to charge vat on room hire in the furtherance of the CASC (maxaca's last point), you will still have to account for that vat, so if it is normally £80 inc vat that's OK, but if it is £80 + vat then you have been over-billed by the instructor.


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By uktaylor
17th Aug 2016 11:22

Hi I currently using TaxCalc on behalf of another accountant. Unfortunately he has suddenly passed away. His clients are coming over to me. I have to buy the TaxCalc software as up for renewal in September. Having just looked at TaxFiler I am keen to use that as it would be over £100 cheaper per month. Does anyone know if I can download all the clients info including prior year figures to TaxFiler? Thank you

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