VAT rules for private tuition

The VAT rules for private tuition are a mess. In my view it is time for a major rethink of the legislation about when fees are exempt from VAT and for which subjects. The timing of this article coincides with a recent thought-provoking First-tier Tribunal case – Julie Lalou trading as Dogs Delight (TC8380) – about whether fees earned from ‘dog grooming’ lessons qualify for exemption as a subject that is ‘ordinarily taught in a school or university’. HMRC and the tribunal said ‘no’ but I have my doubts. Readers might disagree: a qualification in dog grooming skills might not have the same prestige as a degree in banking and finance but is that relevant as far as the legislation is concerned?

The law

Fees earned from private tuition can only be exempt from VAT if the lessons are given by either a sole trader or member...