- The First-tier Tribunal released a decision on whether government grants are considered ‘consideration’ for free education or vocational training services.
- City of Portsmouth College, formerly Highbury College, is registered for VAT and provides further and higher education and vocational training.
- The College is categorized as a general further education college and is an ‘eligible body’ under VATA94.
- The College offers vocational courses aimed at providing students with skills for employment, including both accredited and non-accredited courses.
- The appeal involves grants from the Education Funding Authority and the Skills Funding Agency and their VAT implications.
- Four decisions by HMRC are under appeal:
- First decision involves a VAT assessment for periods 04/15 to 01/16, initially £224,468, reduced to £173,930.
- Second decision involves a VAT assessment for period 07/16, initially £56,117, reduced to £23,878.
- Third decision involves VAT assessments for periods 04/16, 10/16, and 01/17, totaling £66,582.
- Fourth decision involves a statutory review following a decision in a related case.
Source: ey.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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