VAT and evening classes

[rebekah]

I am a sole trader with an online shop and am registered for vat. I am thinking of running classes in the evening, not sure if I will make a profit from it by the time I pay for insurance and the hiring of a room but it's something I enjoy and am happy to do if I break even. I am in yr 1 of my online business and expect the turnover to be about €40,000.

Am I better off to run the evening classes under a different company name to the one my shop is under to avoid paying vat? In fact do I need to register a company for classes that are pretty much going to be more of a hobby than a viable business? Also I am enquiring around about the cost of hiring a room and have applied for quotes for public liability insurance - is there anything else I'm not taking into account for evening classes?

Any advice appreciated,

thanks

Rebekah

 

[T McGibney]

Most education and training services are exempt from VAT.

In general, forming a company for a business with such a low expected turnover would not be recommended.