A little sheepish

He runs courses in the UK other EU countries and also in Australia as the director of his personal company.

The flat rate of VAT suits my client very well since he hardly has any input tax and has adopted 11% as a reasonable flat rate (other business services). Most of the fees have been retained within the company and spare cash is reinvested at one-month money market rates. The company's interest income is now approaching one-third of the turnover.

When applying the flat rate limits in determining eligibility and in computing the flat rate due I have included the standard-rated lecturing fees from UK courses and the exempt rent from letting out the redundant farmland. I have excluded all of the non-UK lecturing as being outside the scope and also the interest income as being 'non-business'.

Clearly there are inheritance tax and taper relief issues ...