Our specialists can assist in a range of VAT & Tax areas

Taxing the provision of education within the UK can be complicated, depending on what subjects are taught and what legal entity is teaching them. For example, eligible bodies providing education are exempt from VAT, but non-eligible bodies must pay it. It’s important that the VAT status of an education provider is correctly classified, so as to avoid any penalties and interest charges.  

Deeks VAT Consultancy fields an experienced team of tax advisers, with in-depth knowledge of these issues. We can help determine the eligibility status of an education provider and whether they’re liable for VAT.  

A 2019 Supreme Court decision amended the law restricting the provision of degree level education solely to colleges and universities. Limited companies may now be included in the definition of eligibility, provided they fulfil certain provisions. Following this decision, we recently assisted a limited company to become an eligible body, so that it doesn’t have to register and charge for VAT.  

Several commercial education providers can also provide tax-exempt education, if they fulfil the provisions of the private tuition exemption. There is vast case law in this area, where providers have believed they were supplying exempt education, but HMRC have disagreed. For example, golf lessons can be exempt from VAT, but belly dancing is standard rated. This is determined on the basis that golf is a subject ordinarily taught in schools and universities, but belly dancing is not.  

Academies also have special rules that allow them to recover VAT on non-business activities without being registered for VAT. Deeks VAT Consultancy, have also provided advice to several academies on ad hoc queries, such as whether VAT incurred on the annual prom can be recovered.