VAT on private tuition provided by ltd co

Going to meet potential new client on Monday. Ltd Co doing private tuition.

From my investigations I think that sole traders and partnerships are exempt from charging VAT on private tuition, however I believe that Ltd Co's should be accounting for VAT.

Got a horrible feeling that they haven't been for the last 17 months!

Any knowledge/advice before Monday?

Anna :)
FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire


  • payrollpro
    payrollpro Registered, FMAAT Posts: 427 Dedicated contributor 🌟 🐵 🌟

    Educational services provided by a charitable body are exempt from VAT by virtue of Sch 9, Group 6, VATA1994. I only know this because I provide educational services to the AAT and have to be partially exempt because of it.

    You are right that an individual teacher working as a sole trader or as a partner is not providing business services as long as they are teaching what would normally be taught in a school. They are classed as exempt so no output tax or provision and no claim of input tax on purchases.

    However, private tuition from a private company or where the sole trader hires another teacher then those supplies are business and taxable. I suggest you look at Notice 701/30(January 2002) for the full set of statements.

  • anniem
    anniem Registered Posts: 1,326
    Fab, thanks Payrollpro! :)
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
Privacy Policy