Readers’ forum: Pay VAT on charity’s work?

I have taken on a new charity client which provides day care support by way of therapy; the clients of the charity carry out garden-related activities for therapeutic purposes and the charity receives funding from the council to help pay the carers on the payroll and other costs. The work is carried out at a site for which they pay a nominal rent. Presumably the grant income is outside the scope of VAT and can be ignored as far as the £85 000 registration test is concerned?

However the charity has recently taken on some additional gardening work at other sites and the landlords/owners of these sites will pay the charity for the work done.

My thinking is that this income is taxable for VAT purposes and if the total annual fees exceed £85 000 (which is likely) they will need to register for VAT? Am I correct?...