Is education exempt from VAT in the UK?

Last reviewed 28 September 2026. Checked against HMRC guidance, legislation and the judgments linked under Sources. General information, not tax advice.

Short answer

Only in certain cases. Education is exempt when an eligible body supplies it, when a sole trader or partner gives private tuition in a school or university subject, when examination services meet set conditions, and when vocational training is funded by the Department for Education or a similar body. Other education, including most commercial training, is standard-rated at 20%. Since July 2026 the St Patrick's ruling has opened a possible further route for private colleges and delivery partners teaching courses such as HNCs, HNDs and pre-sessional English.

The routes to exemption

Route	Who it covers	Main condition
Eligible body	Schools, universities, FE colleges, approved fee cap providers, public bodies, qualifying non-profits	The supplier is on the list in the law
English as a foreign language	Commercial English language schools	EFL tuition only
Private tuition	Sole traders and partners	Taught personally, in a subject taught in schools or universities
Examination services	Any provider	Supplied by or to an eligible body, or to a learner receiving exempt education or funded training
Funded vocational training	Any provider	To the extent it is ultimately funded by the Department for Education, an apprenticeship service account or a devolved equivalent
Closely related supplies	Eligible bodies	For the learner's direct use and necessary for the education, such as some accommodation, catering and trips
St Patrick's route	Private colleges and delivery partners in higher and further education, including HNC, HND and English language teaching	Courses students would see as the same as those at eligible bodies. HMRC is appealing.

Where this site focuses

We concentrate on the St Patrick's route and the English language rule, for private colleges and delivery partners teaching HNCs, HNDs and English language courses for themselves or for universities and colleges. See HNC and HND delivery partners and English language and pre-sessional providers. For the other routes, HMRC's VAT Notice 701/30 has the detail.

Exemption is not a choice

If your supplies meet the conditions for exemption, they are exempt. You cannot opt to charge VAT instead because it suits you. That cuts both ways. Exempt income means no VAT on your fees, but it also means you cannot recover the VAT on costs linked to that income. For a provider whose customers are VAT-registered businesses, exemption can leave everyone worse off. See input tax and partial exemption.

What exempt means in practice

You do not charge VAT on the exempt fees.
Exempt income does not count towards the £90,000 VAT registration threshold, which is based on taxable supplies.
You cannot recover input tax on costs used to make exempt supplies, unless it falls within the partial exemption de minimis limits.

Private schools are different

Since 1 January 2025 education and boarding supplied by private schools in the UK for a charge have been standard-rated at 20%. That change has nothing to do with the St Patrick's ruling, which is about providers of higher and further education. This site does not deal with private school fees.

Every guide in this section

Sources

VAT Notice 701/30, education and vocational training (updated 27 January 2025): GOV.UK
VAT Act 1994 Schedule 9 Group 6: legislation.gov.uk
VAT registration thresholds: GOV.UK
Revenue and Customs Brief 9 (2026): GOV.UK