My client is a successful tennis coach delivering coaching to schools and within the community. He is currently trading as a sole trader and subcontracts some of the work to other tennis coaches. We are mindful of the taxable turnover for VAT in relation to the coaching delivered by subcontracted staff. My client has been offered the opportunity to run several council sites as part of a community project. In order to develop the business further and be in a position to apply for grants and funding from the LTA and local council, we are looking at transfering the trade to a CIC. We would also seek VAT exemption for sports coaching and understand that the constitution of the CIC would require restriction on distribution of profits and an asset lock to be eligible. There is no problem with this, but what I am unable to establish from the legislation is whether my client, the sole director and shareholder, would be able to receive a salary from the company and could this be increased within reason as the business grows? Does the 'commercial influence' clause for eligibility for VAT exemption prohibit this?