Output VAT on Golf Lessons

Output VAT on Golf Lessons

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I act for a number of Golf Professionals , some of whom are Sole-traders and others who trade through their own Ltd Company.

The question has arisen as to the VAT status of Golf Lessons provided as I have received conflicting advice on 2 occasions from the Helpline.

Am I correct in saying that the lessons provided by the Sole Trader are exempt, whilst those povided by the Director/Employee are Std Rated ?

Replies (4)

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Chris M
By mr. mischief
25th Mar 2012 14:04

I believe and hope so!

Private tuition is exempt from VAT providing it is “taught independently of an employer” VAT Act 1994 Schedule 9 Group 6 Item 2.

For a sole trader, it is clear these lessons are exempt providing they are given personally and not by an employee of the trader.

A limited company director has an employer - namely the company.  Hence no tuition is deemed to be private.

This is the advice I've given to several dance teachers who were considering incorporation.  From a tax point of view, the extra VAT and hassle of being registered normally outweighs the reduction in NI from incorporating.

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By User deleted
25th Mar 2012 14:54

I'm not sure which school you went to ...

... but is golf a subject normally taught at school or university? It would seem so - Marcus Webb

Unfortunately, the wording of that decision is not particularly helpful - it simply says that the supplies of one individual providing tuition as an employee are not exempt - it does not seem to address the fact that the individual in question was also making supplies as a self-employed person (ie does not indicate whether or not those supplies could remain as exempt)

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By Roland195
26th Mar 2012 14:17

Private Tuition

The stipulation is that as well as being an individual, the subject being tutored has to be "regularly" taught at School/Universities".

Golf, it seems is, although it was not at my school and I would not be too happy to consider this is what we spend the tax on.

I don't know how many schools/universities a subject has to be taught in to be considered "regularly" but as I can well suppose that private schools offer all manner of sporting options - shooting, sailing, fox hunting, Eton Leapfrog etc it would seem that this could all qualify too.

 

 

 

 

 

 

 

 

 

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Chris M
By mr. mischief
26th Mar 2012 15:02

typically woolly rule

A typically woolly rule, what a surprise! I live near a school with 2,000 pupils. I can confirm that golf is regularly taught there, as can any HMRC official who cares to examine the playing fields in summer - sure to find a few balls in the hedges! I am not sure that dance is regularly taught there, however - but I am very confident that dance is OK by HMRC due to the many VAT cases involving dancing schools!  I don't have a golf, cricket, hockey, tennis, triatholon, rowing pro on my books but if I did I'd be claming it as private tuition, advising my client to get tax insurance and being ready for any challenges.

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