In RDS Driving Services v HMRC [2017] UKFTT 660 (31 August 2017) the FTT found that a course for driving instructors divided into three parts but payable in advance was a single supply.
The appellant RED provided driving instructor training courses. It accepted that each part of the course represented a supply for VAT purposes; and that to the extent that the trainee commenced one of the parts the element of the prepayment made for that part was subject to VAT (VATA 1994 ss 4 and 5). However RED also argued that where an individual did not commence one or more of what it described as ‘discrete’ parts of the course the element of prepayment made for those parts no longer represented direct consideration for a supply of training and was therefore outside the scope of VAT.
The FTT observed that...
