accounting treatment

Hi,

I don’t know if this is a question that’s likely to come up in the exam, but my friend asked me the other day for some advice, and I couldn’t think of how to answer it, so hoping someone here can.

Basically, he works as a freelance musician (like myself), but he is set up as a company. The other day he did a one-off teaching job. The college has already paid him, but has deducted tax at source (I’m guessing at the rate of 20%), and they also deducted national insurance. What is the normal accounting procedure for this scenario, so he doesn’t pay tax twice?

Also, he is VAT registered (flat rate), and he said something about education being zero-rated or exempt, and he wasn’t sure whether he should send them a VAT invoice or not. Does anyone here know the answer to this?

Thanks for your help.