Readers’ forum: Will training business need to register for VAT?

We act for a sole trader client who is not VAT registered but anticipates that his annual sales will exceed £85 000 at the end of next month. His business has three different activities:

• the provision of MIDAS courses (Minibus Driver Awareness Scheme) – whereby they teach school staff how to drive school minibuses;
• ongoing MIDAS driving assessments – ensuring that every four years those with the qualification are still eligible and meet the requirements;
• the provision of passenger assistance courses – teaching escorts how to safely travel with children/adults with special needs to or from school or college.

With regard to the passenger assistance courses my client is engaged by the local council but invoices the individuals taking the course directly. The contract with the first two sources of income is directly with the schools.

One school has mentioned to my client that they are VAT exempt and...