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HMRC internal manual

VAT Taxable Person Manual

Particular trades: driving schools - information to obtain

1 Documents to obtain

  • Copies of advertising and promotional material used by both school and instructors;
  • signed copies of the current agreements between school and instructor;
  • copies of appointment cards, introductory Letters, and/or offers given to the pupils by the school;
  • examples of invoices/receipts given to pupils.

2 Questions to ask

  • On what supplies does the school currently accounting for output tax , and how long has the current system operated?
  • What fees are currently charged to pupils?
  • How much does the instructor receive?
  • Who sets the prices which pupils have to pay for their tuition?
  • What is the average number of lessons given in a week by an instructor?
  • How do pupils book lessons; who allocates pupils to instructors?
  • What is the weekly fee payable by instructor to school?
  • Is there a reduction in the weekly fee payable by the instructor to the school if only a minimal number of lessons are generated; for example if the instructor is sick or on holiday, is the hire or booking fee to the school still payable?
  • Who collects money from the pupils?
  • If the driver collects the fees, does he have to pass these on to the school on a daily or weekly basis?
  • To whom are the pupils’ cheques payable; are credit cards accepted?
  • What does the school do if a pupil complains about either his tuition or the instructor?
  • Who is responsible for:

    • insuring the car?
    • insuring the pupil?
    • maintaining and repairing the car?
    • the cost of petrol used in lessons?
  • Who bears the cost of advertising?
  • Can instructors accept work independently of the school?
  • What records does the school retain relating to its instructors? Is the school able to easily calculate how much each instructor has earned in a given period?
  • What does the school do if the instructor cancels a lesson?
  • Are the instructors obliged to advertise the school on their cars?