Sorry dobbin1, I had the thread title in mind.
However:
Most schools that are registered have two rates (and any that operate in excess of around 500 hours a year usually are, because they exceed the turnover limit).
One rate for solo hire and one for training, both including or plus a VAT amount. Any that have a non VAT charge for instruction with VAT being charged on the aircraft in their fleet (whoever that aircraft amount may be paid to) run the risk of an investigation as outlined by ALEXA. They could easily be seen by HM customs as deliberately structuring the business to avoid VAT.