Training MOT testers Standard rated or Exempt?

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I have been reading VAT notice 701/30 to work out whether training people to become MOT vehicle test engineers is a standard rated or exempt activity. Can anybody help?

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chips_at_mattersey
By Les Howard
07th Dec 2020 18:53

The education exemption depends on the non-profit status of the provider as well as the nature of the service delivered. If the provider is a corporate body with no restriction on the use of profits, then the exemption will not apply.
If you do satisfy that test, then I would expect the service to be either education or vocational training.

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Replying to leshoward:
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By THE TAX CLINIC LIMITED
08th Dec 2020 09:35

Hi Les. They are certainly commercial. I tend to assume the activities of a business are subject to VAT unless I can find evidence to say that they are exempt.

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Replying to THE TAX CLINIC LIMITED:
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By Echo761
09th Dec 2020 13:37

If in doubt... charge it out!

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boxfile
By spilly
07th Dec 2020 22:45

When my garage clients send staff for training to be MOT testers, there is always been VAT charged on the courses. However, the courses are always run by commercial suppliers as there don’t seem to be any left in the further education sector now.

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Replying to spilly:
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By THE TAX CLINIC LIMITED
08th Dec 2020 09:34

Thanks spilly. A prospective client is placing people that want to be trained with training providers. They are convinced that they are exempt from VAT because someone they used to know claimed to be exempt. My response was that you need to be close to 100% sure rather than relying on what they have been told. I have also explained that they are placing trainees rather than training people.

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Replying to THE TAX CLINIC LIMITED:
RLI
By lionofludesch
08th Dec 2020 11:59

THE TAX CLINIC LIMITED wrote:
They are convinced that they are exempt from VAT because someone they used to know claimed to be exempt.

Maybe their turnover was below the threshold.

My vote is for standard rated. Purely based on the flimsy information provided.

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Replying to lionofludesch:
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By THE TAX CLINIC LIMITED
08th Dec 2020 15:36

Thanks and flimsy because there isn't any more info

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Replying to THE TAX CLINIC LIMITED:
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By lionofludesch
08th Dec 2020 15:46

I'd be amazed if this were exempt.

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By THE TAX CLINIC LIMITED
08th Dec 2020 15:36

Thanks and flimsy because there isn't any more info

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Replying to THE TAX CLINIC LIMITED:
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By Jason Croke
08th Dec 2020 16:52

THE TAX CLINIC LIMITED wrote:

Thanks spilly. A prospective client is placing people that want to be trained with training providers. They are convinced that they are exempt from VAT because someone they used to know claimed to be exempt. My response was that you need to be close to 100% sure rather than relying on what they have been told. I have also explained that they are placing trainees rather than training people.


Placing trainees, as in they find people who want training and your client places them with training providers who provide the actual training?

So what fee does your client earn for doing this, is it a commission/finders fee? if so, that would be taxable.

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By Cheshire
08th Dec 2020 12:28

Am confused, although I am lacking on sleep. You mention 'training people' then you say 'placing people'.

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