Hi again.You can read the basics on VAT here. In net terms, a business registered for the standard VAT system actually pays no VAT. You are simply an unpaid tax collector for HMRC. If all your turnover is VATable at 20%, you will charge your customers £40,000 in VAT (£200,000 x 20%). You will offset against that any VAT added to your expenditure by your suppliers for equipment etc. If the VAT you charge exceeds the VAT you pay, then you pay over the net amount to HMRC. If the VAT you pay exceeds the VAT you charge, you will receive a VAT repayment which is not taxable income.As a sole trader, you will complete a self-assessment tax return. If you are registered for the standard VAT system (as opposed to the flat rate system which you cannot register for if your turnover is more than £150,000 per annum, see here), you exclude the VAT you charge your customers from your turnover and the VAT you pay your suppliers from your expenses. So, your profit or loss will be turnover less expenses. VAT doesn't come into it as in net terms your business pays no VAT. Your customers pay the VAT.You should take a look at VAT Notice 701/45 (August 2011) here and seek out more detailed advice from your accountant or tax adviser as to the VAT implications for the type of service(s) you supply. Some sports services are exempt from VAT but paragraph 4.1 suggests that exemption only applies to non-profit making organisations. As you will see here, your type of business is in a niche area and I can only give you some pointers from a distance.I hope this helps but let me know if you have any further questions. I have to go out for a while but will be back in about 90 minutes.
If you currently charge £100, then after you register for VAT, you will charge £83.33 plus £16.67 VAT if you don't want to pass on the VAT to your clients. In effect, you will be paying the VAT yourself. That's a difficulty many businesses face I'm afraid.
You might see an advert occasionally on TV from a car dealer offering VAT free cars for the weekend. They aren't VAT free at all. The dealer is effectively paying the VAT but it still shows up on the invoice he gives to the customer.
Thanks for accepting my answer and good luck with your plans.