As far as I know VAT is chargeable on any service provied, however the provider has to have a turnover above ?60K
this is what the HM Customs say
What is VAT?
Value Added Tax (VAT) is a tax charged on most business transactions made in the UK or the Isle of Man.
It is also charged on goods, and some services, imported from places outside the European Union and on goods and some services coming into the UK from the other EU countries.
All goods and services that are VAT rated are called ?taxable supplies?. You must charge VAT on your taxable supplies from the date you first need to be registered. The value of these supplies is called your ?taxable turnover?.
Some examples of taxable supplies:
selling new and used goods, including hire purchase
renting and hiring out goods
using business stock for private purposes
providing a service, for example hairdressing or decorating and
charging admission to enter into buildings.
If you are VAT registered, you will charge VAT on many goods and services you supply to customers in the UK and Isle of Man.
VAT does not apply to certain services because the law says these are ?exempt? from VAT. These include loans of money, some property transactions, insurance and certain types of education and training. Supplies that are exempt from VAT do not form part of your taxable turnover.
There are three rates of VAT in the UK:
17.5% (standard-rate)
5% (reduced rate) and
0% (zero-rate).
You will probably have to register for and charge VAT if:
your taxable turnover reaches or is likely to reach a set limit, known as the VAT registration threshold
you have taken over a business as a going concern or
you acquire goods from other European Union countries.
The current VAT registration threshold is ?60,000. But you can opt to register for VAT if your taxable turnover is less than this, if what you do counts as a business for VAT purposes. Turnover is the amount of money going through the business, not just the profit
