My client is a Limited Company. The client runs tennis lessons/coaching sessions in a school during Curriculum time and the school day.
My client invoices the school. The school then pass on charges as they see fit to parents.
My client also runs afterschool sessions which parents pay for directly.
All of the sessions happen at the school venue. My clients turnover is in excess of the VAT threshold.
My client has many peers who also run coaching companies, both as sole traders and limited companies.Apparently their accountants are adamant that the income is exempt from VAT on the basis of - what?
My research indicates that my clients income from coaching is not exempt as
- it supplies services to a body not an individual
- it is not non profit making
I'm (and my client) struggling to understand on what basis his peers who apparently are commercial businesses would be VAT exempt given that they are also over the VAT threshold. Clearly we are talking about a not insignificant amount of money; my client is not convinced which advice to take. Starting to doubt myself as well!
Am I missing something or a trick somewhere?