So, one of the big software companies is running an advert (again and again) on commercial radio about Meg the freelance driving instructor and her VAT return.
Why on earth is she completing a VAT return?
Some simple maths:
1. Approx cost for a driving lesson = £30
2. VAT reg limit > £85,000
3. Number of lessons needed to exceed said limit - 2834 pa rounded up
4. Meg is a hard worker so we'll assume 48 working weeks
5. 2834/48 = 59 lessons a week. So rounded it is 60
6. Wow - 60 hours driving lessons a week. She must have a 100% pass rate and be exhausted.
7. Let's add, a not an unrealistic assumption, of 1/2 an hour driving between each lesson. For most cities these days that is about 1 mile so she needs 30 hours just to-ing and fro-ing to lessons
8. Now add the fact that the target audience tends to be in school or college or university reading their mobile phones during the day - where does anyone manage to book in 60 hours of lessons?
9. And, the big fact her customers are not VAT registered so why work flat out to be over the limit?
I suggest Meg does not need any "fancy" software and should see an accountant (who attends courses with The Smart Training Group obv.) for more suitable guidance.
And what is this 7 July deadline they keep mentioning?
All just an observation.