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HMRC internal manual

VAT Education Manual

From
HM Revenue & Customs
Updated
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Group 6 Item 5 Vocational training: when is VAT is chargeable on vocational training under a Government-approved scheme?

Training paid for from one of the sources listed in VATEDU55500 is exempt. However:

### If… ### then… ### and the training provider should…
     
the trainee or an employer pays part of the cost of the training from their own resources that part of the supply is not covered by the special exemption apportion between exempt and standard-rated elements unless it is an eligible body (seeVATEDU39000).
the training provider contracts with a further education college it must find out what proportion of the payment by the college derives from funds listed in VATEDU55500  charge VAT on the remaining proportion unless it is an eligible body (see VATEDU39000.
the contract allows for a separate supply of management services the management services are not covered by the exemption charge VAT.

Training credit vouchers

If a trainee hands the training provider a training credit voucher to redeem with its local office of the Young People’s Learning Agency (YPLA) and the Skills Funding Agency (SFA), the income received from it is part of the consideration for the exempt supply by the training provider.