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EDUCATION SUPPORT SERVICES & VAT

I have a Client who act as an agent for university colleges and Solicitors .

I have a Client who act as an agent for university colleges and Solicitors . He get fees from his students for eductaion and legal matters from which he deduct his commision and pay rest to other party. If we take only commision as his turn over then he is well below VAT threshold but if we take all the credits included fees paid into his accounts for other parities i.e colleges and solicitors then its above VAT .  After reading HMRC guidlines I am confused but my inderstanding is that only his commison earned will be his turn over and he does not required to register for VAT please advise.

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24th Oct 2017 08:32

His turnover is the value of commission received only if he is acting as Agent. What do his contracts say?
(and, you are right; HMRC guidance on this point is pretty poor!)

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