Teachers’ treatment

We have been instructed to act for a client who runs a small school for pupils aged from four to eight years who need additional coaching to cope with learning difficulties such as dyslexia. Pupils attend the school for periods from between half a day up to five days each week.

Our client engages approximately 15 freelance assistants to coach the pupils. In addition these freelance assistants undertake coaching of pupils in their own time and on their own account.

In the past the client has regarded herself as being exempt from VAT although reading Neil Warren’s article Chalk and cheese we are confused as to whether this is the correct approach. The turnover exceeds the VAT registration threshold.

We have been giving consideration to incorporation of the business but this would appear to result in a need to charge VAT on...