- HMRC is considering imposing VAT on ESFA funding received by Further Education colleges.
- This uncertainty stems from a 2020 Upper Tribunal decision involving Colchester Institute Corporation.
- The tribunal found that ESFA funding is “consideration” for a supply of services.
- HMRC won the appeal but has not yet implemented the policy.
- A new hearing in the CIC case is scheduled for mid-2025.
- The government has announced that VAT will be applied to fees paid for private school education.
- New legislation will carve out private school education from the VAT exemption.
- A private school is defined as an institution providing full-time education for pupils of compulsory school age or for persons over compulsory school age but under 19.
Source: mha.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
