HMRC has issued clarification of its view that educational providers who receive payment for tuition fees in the form of advanced learner loans from Student Finance England must account for VAT at the standard rate, unless they are ‘eligible bodies’ for the purposes of the VAT education exemption.
Revenue and Customs Brief 2/2018: ‘VAT treatment of advanced learner loans’, sets out HMRC’s response to what it sees as inconsistent treatment of such loans among education providers (see http://bit.ly/2BFxtGT). Businesses who have applied an incorrect treatment on the advice of HMRC should provide evidence in writing by 31 March 2018.
HMRC says it will also make an amendment to its VAT Education manual in due course.
HMRC has issued clarification of its view that educational providers who receive payment for tuition fees in the form of advanced learner loans from Student Finance England must account for VAT at the standard rate, unless they are ‘eligible bodies’ for the purposes of the VAT education exemption.
Revenue and Customs Brief 2/2018: ‘VAT treatment of advanced learner loans’, sets out HMRC’s response to what it sees as inconsistent treatment of such loans among education providers (see http://bit.ly/2BFxtGT). Businesses who have applied an incorrect treatment on the advice of HMRC should provide evidence in writing by 31 March 2018.
HMRC says it will also make an amendment to its VAT Education manual in due course.
