Claiming
How do you reclaim VAT you should not have charged on course fees?
Short answer
You make a claim to HMRC under section 80 of the VAT Act 1994. It can only go back four years from the end of each VAT period, it must be for the net amount after the input tax you would not have been entitled to recover, and HMRC can refuse it if your customers bore the cost. Small errors can be corrected on a VAT return. Larger ones are notified to HMRC separately.
The four-year limit
HMRC is only liable to repay VAT that was not due if the claim is made within four years of the end of the VAT period concerned. For a VAT quarter ending on 30 September 2022, that meant claiming by about 30 September 2026. Each month or quarter that passes without a claim loses the oldest period for good. The Supreme Court appeal does not pause this.
Net claims
If your fees were exempt, the VAT you recovered on costs linked to them was not recoverable either. HMRC's Brief 9 (2026) says you can only claim the net amount, and section 80 lets HMRC set other amounts against a claim. So the starting point is VAT accounted for on the fees, less input tax attributable to them, period by period. See input tax and partial exemption.
Correcting a return or notifying HMRC
| Net value of errors | How to correct |
|---|---|
| £10,000 or less | Can be adjusted on your next VAT return |
| £10,000 to £50,000 and no more than 1% of box 6 for the return | Can be adjusted on your next VAT return |
| Above those limits, or deliberate | Must be notified to HMRC separately |
HMRC now asks for separate notifications to be made online, through its service for reporting errors in VAT returns. A notification has to set out how each error arose, the periods, whether it concerns output or input tax, the amounts, how they were worked out and the total. Because HMRC says it will review education claims case by case, a separate notification with full workings is usually the clearer route even for smaller amounts. Your adviser will confirm what suits you.
Protective claims
A protective claim is an ordinary section 80 claim made now so that older periods do not fall out of time while the law is uncertain. HMRC's Brief 9 (2026) recognises that some businesses may want to protect their position. HMRC has not said whether it will pay these claims before the Supreme Court decides.
Periods after 2023
HMRC's Brief does not say whether claims can cover supplies made after 31 December 2023. Since 1 January 2024 UK law has not allowed VAT legislation to be disapplied for being incompatible with EU law, though EU law can still shape how it is read. The colleges in St Patrick's won on periods from 2012 to 2017, so claims for later periods carry extra legal risk. A review will look at both sides of that date separately.
Interest
Do not count on it. Statutory interest under section 78 of the VAT Act applies only to periods starting before 1 January 2023 and only where HMRC was at fault. Later periods fall under the repayment interest rules, and HMRC's guidance says it does not pay interest where VAT was paid in error. Brief 9 (2026) says nothing about interest on these claims.
If HMRC wins in the Supreme Court
Section 80(4A) of the VAT Act allows HMRC to assess for amounts it credited that it was not liable to credit. If HMRC wins and has already paid a claim, it could try to recover the money. That is one reason to think carefully before spending a repayment.
What else HMRC will check
- Whether your customers bore the VAT. See unjust enrichment.
- Whether your courses really are similar to courses at eligible bodies.
- Whether the VAT you are claiming was actually accounted for and paid over.
The claim checklist sets out the records you will need.
Sources
- VAT Act 1994 section 80: legislation.gov.uk
- VAT Notice 700/45, correcting errors and making claims: GOV.UK
- Revenue and Customs Brief 9 (2026): GOV.UK
- Finance Act 2024 section 28, interpretation of VAT law from 1 January 2024: legislation.gov.uk
- Revenue and Customs Brief 4 (2024), interpretation of VAT and excise law from 1 January 2024: GOV.UK
- Repayment interest on VAT: GOV.UK