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A music teacher has a business turnover of £60,000 a year. He has a studio equipped with musical instruments that he hires out. If his turnover exceeds the VAT registration limit, to what extent might his fees be exempt from VAT?
My client is a sole trader whose current business turnover is in the region of £60 000 a year. He trades as a music teacher and has a studio which is fully equipped with various musical instruments that he hires out.
My question is what would be the implications if his turnover were to exceed the VAT registration limit? There are two points that I would like clarified.
First am I right in thinking that if he offered music tuition this would be exempt from VAT? However what would happen if the pupil were to use the teacher’s musical instruments or his studio as part of the tuition? Would the tuition then become a standard-rated supply?
Second he has been advised that if he hired out his studio he would not need to charge VAT on this income because I do not think that his landlord levies...
