VAT – exemption for studies taught ordinarily at school

In the UK, VAT exemption for education applies to subjects that are ordinarily taught at schools or universities. This means that where a course aligns with mainstream academic or vocational subjects, it may be exempt from VAT. However, recent VAT appeals have clarified that not all lessons or training programmes qualify.

Businesses offering educational services must be aware of these rules to ensure they apply VAT correctly and avoid costly errors.

What Doesn’t Qualify for VAT Exemption?

Recent tribunal cases have confirmed that certain courses do not benefit from VAT exemption for education, including:

  • Pilates classes – While beneficial for health and fitness, they are not considered part of a formal school or university curriculum.
  • Belly dancing lessons – Though popular for recreation and cultural learning, they do not fit within mainstream education standards.
  • Motorcycle lessons – Despite being an important skill, motorbike training is not typically taught in schools or universities and is therefore subject to VAT.

If an educational service does not meet HMRC’s criteria, standard 20% VAT must be charged.

How to Determine If Your Course Is VAT-Exempt

For a course to qualify under the VAT exemption for education, it should:

  1. Be ordinarily taught in UK schools or universities.
  2. Follow a recognised syllabus that aligns with mainstream education.
  3. Be delivered by an eligible body, such as a school, college, or university.

Private tuition in a school-taught subject by an individual teacher may also qualify. However, businesses must check their VAT obligations carefully.

How We Can Help

VAT on education services can be complex, and misapplying VAT exemption rules may lead to HMRC scrutiny or penalties. At Lewis Brownlee, we assist businesses in:

  • Assessing VAT liability for educational services.
  • Ensuring compliance with HMRC’s VAT exemption rules.
  • Providing expert VAT advice to avoid costly mistakes.

If you offer educational services and need guidance on VAT compliance, contact us via our contact page today.

Ensuring you apply the correct VAT treatment will help you stay compliant and avoid unexpected tax liabilities.