Q: When two of my clients retired from teaching, they set up a partnership to deliver tuition for GCSE Mathematics and English. Each tutor teaches their own individual students, as well as delivering tuition to a group, but sometimes they use third-party teachers to take the group sessions. Their turnover is £140,000 looking back over the last 12 months but they are not VAT registered as they assume their services are all exempt; is this correct?
A. Where a sole trader or a partner in a partnership teaches a subject usually taught in schools or universities, this is an exempt supply of private tuition. As your client is a partnership and the partners are teaching normal syllabus subjects then their tuition will be an exempt supply.