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Taxable extras?

15 June 2006
Issue: 4062 / Categories: Forum & Feedback

Our client is a private school (taxed as a business rather than a charity). In addition to the fees for education, the school charges for the registration of potential pupils, concerts and plays, and additional fees for outings. Some of these outings are effectively compulsory (in that the fee is charged whether or not the pupils participate), but the others involving overnight stays are optional and therefore a charge is raised only for the pupils who take part. The school also raises additional funds to purchase equipment through sponsored events.

Our client is a private school (taxed as a business rather than a charity). In addition to the fees for education the school charges for the registration of potential pupils concerts and plays and additional fees for outings. Some of these outings are effectively compulsory (in that the fee is charged whether or not the pupils participate) but the others involving overnight stays are optional and therefore a charge is raised only for the pupils who take part. The school also raises additional funds to purchase equipment through sponsored events.
We are happy that all this income represents turnover for the purposes of direct taxes. However we wonder whether the additional income (which can be quite substantial) should (or could) be subject to VAT. If so is there any way that the requirements for a VAT receipt could be avoided as we do...

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