Claiming
How might the rules play out for different providers?
Short answer
These four examples use invented figures. They are illustrations, not real clients. They show how the same rules can produce a sizeable net claim for one provider and nothing worth pursuing for another, depending on who pays, what input tax comes off and which route to exemption applies.
1. A private college delivering HNDs
A London college delivers Pearson HNDs to self-funding learners and charges VAT on fees. Its VAT-inclusive fee income is £1.2 million a year, so it accounts for £200,000 of VAT a year. It recovered £30,000 a year of input tax on costs linked to those courses. It makes its claim in October 2026, so the four-year window starts in October 2022.
| Period | Months | VAT on fees | Input tax off | Net |
|---|---|---|---|---|
| October 2022 to December 2023 | 15 | £250,000 | £37,500 | £212,500 |
| January 2024 to September 2026 | 33 | £550,000 | £82,500 | £467,500 |
| Total | 48 | £800,000 | £120,000 | £680,000 |
What the college should weigh up: the whole claim depends on the St Patrick's ruling surviving in the Supreme Court. The part from 2024 carries extra legal risk. HMRC is likely to test unjust enrichment, so the college's evidence that it competes with VAT-free FE colleges on price matters a great deal. If it waits until January 2027, the three oldest months drop out, taking about £42,500 of net claim with them.
2. An English language school
A school takes £600,000 a year in EFL fees and £150,000 including VAT for a teacher training course. It has been charging VAT on everything, so £100,000 a year of VAT on EFL fees and £25,000 on teacher training. Its input tax is £40,000 a year: £10,000 on costs used only for teacher training, £5,000 only for EFL and £25,000 on shared costs.
| Per year | Amount |
|---|---|
| VAT charged on EFL fees that should have been exempt | £100,000 |
| Input tax on EFL-only costs, no longer recoverable | £5,000 |
| Shared input tax no longer recoverable (82% exempt share) | £20,500 |
| Net amount per year | £74,500 |
The EFL exemption is written into UK law, so this claim does not depend on the Supreme Court appeal or on the 2024 change. Unjust enrichment is the main question. Going forward the school is partly exempt and must account for it on every return.
3. A sole trader maths tutor
A tutor registered for VAT voluntarily some years ago and has charged VAT on tuition she gives personally. Her VAT-inclusive income is £66,000 a year, so £11,000 of VAT, and she recovered £1,200 a year of input tax.
Her tuition meets the private tuition conditions, so it was exempt. Over four years the net amount is about £39,200. Because tuition is her only income, she would have to cancel her VAT registration. HMRC may argue that families bore the VAT, particularly if she raised her prices when she registered.
4. A management training company
A company runs leadership courses for businesses, which pay £500,000 a year plus VAT. Its customers are VAT registered and recover the VAT it charges.
No route to exemption fits: it is not an eligible body, the training is not funded and it is not comparable to university or college courses bought by individuals. Even if it were exempt, its customers would pay the same and it would lose its input tax. The answer here is to keep charging VAT and not spend money on a claim.
These are illustrations
Real claims turn on the detail of your courses, your learners, your VAT periods and your costs. Take advice before acting on any figure here.