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Readers’ forum: In at the deep end

01 December 2015
Issue: 4529 / Categories: Forum & Feedback

Are swimming lessons supplied through a limited liability partnership VAT exempt?

I have recently been approached by two individuals who wish to purchase an established swimming school business that provides lessons to children. The business trades through a limited liability partnership (LLP).

As well as the two existing designated members the LLP uses a number of tutors to take the lessons. To take advantage of the VAT exemption available to private tuition supplied by an individual or member of a partnership each tutor is a shown as an “other member” in the LLP constitution. While the designated members receive a profit share of 99.98% the remaining 12 members share 0.02% between them giving an effective annual profit share of £1 each.

The LLP constitution states that each tutor will be regarded as self-employed for the services supplied. Each tutor is registered as self-employed and is remunerated for the number of hours they work through their own separate businesses....

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