The ruling
What does HMRC Brief 9 (2026) say about claims from alternative education providers?
Short answer
Revenue and Customs Brief 9 (2026), published on 2 September 2026, says alternative providers of higher or further education who believe they are in the same position as St Patrick's International College can claim a refund of VAT. It does not change HMRC's policy, which is still that education from providers who are not eligible bodies is standard-rated. HMRC will review claims case by case and is appealing to the Supreme Court.
What the brief says
| Point | What HMRC says |
|---|---|
| Who it is for | Alternative providers of higher or further education, and VAT advisers. |
| Who can claim | Alternative providers who believe they are in the same position as St Patrick's International College. |
| Which supplies | You can proceed on the basis that supplies similar to those in the case may have been exempt. The brief covers education and closely related services. |
| How claims are handled | Case by case. HMRC will consider unjust enrichment, partial exemption and whether overdeclared VAT has been correctly accounted for across the supply chain. |
| How much | The net amount only, after taking off input tax you previously recovered that relates to the supplies. |
| Time limits | The normal statutory requirements and time limits apply. There is no special deadline. |
| HMRC policy | Unchanged. Education from providers who are not eligible bodies is standard-rated. |
| The appeal | HMRC has permission to appeal to the Supreme Court and will protect its position to secure tax revenues until the appeal is decided. |
What the brief does not say
Several questions a provider will want answered before claiming are not covered:
- Whether HMRC will pay claims now or hold them until the Supreme Court decides.
- What happens to money already repaid if HMRC wins. Section 80(4A) of the VAT Act 1994 gives HMRC a power to assess for amounts it credited that it was not liable to credit.
- Whether claims can cover supplies made after 31 December 2023, when the way EU law applies in the UK changed.
- How providers should treat new supplies while the appeal is pending.
- Whether interest will be paid.
The brief does not use the phrase protective claim. It does recognise that some businesses may want to protect their position, which in practice means making an ordinary claim now so that older periods do not fall outside the four-year limit while the appeal runs.
How to make a claim
The brief points to VAT Notice 700/45: section 4 on correcting errors, section 5 on claiming a refund and section 9 on unjust enrichment. It also points to VAT Notice 706 on partial exemption.
Under Notice 700/45 you can correct errors on your next VAT return if the net value is £10,000 or less, or between £10,000 and £50,000 and no more than 1% of your box 6 figure for that return. Anything larger has to be notified to HMRC separately, and HMRC now asks for this to be done online. Because HMRC says it will look at these claims case by case, a separate notification with full workings is usually the clearer route. Your adviser will confirm which applies to you.
More on the mechanics in reclaiming overpaid VAT.
Should you stop charging VAT now?
HMRC has not said, and its policy is still that these supplies are standard-rated. If you stop charging VAT and HMRC wins in the Supreme Court, you could face assessments for the VAT you did not account for. The cautious course while the appeal is pending is to carry on accounting for VAT as now and claim for past periods. Take advice on your own position before changing how you invoice.
Sources
- Revenue and Customs Brief 9 (2026): VAT liability of supplies of education by alternative providers of higher and further education, published 2 September 2026: GOV.UK
- VAT Notice 700/45, how to correct VAT errors and make adjustments or claims: GOV.UK
- VAT Notice 706, partial exemption: GOV.UK
- VAT Act 1994 section 80: legislation.gov.uk
- St Patrick's International College Ltd & Ors v HMRC [2026] EWCA Civ 852: caselaw.nationalarchives.gov.uk