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