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HMRC internal manual

VAT Government and Public Bodies

Local authority education services: voluntary aided schools: introduction

Voluntary aided schools are founded by voluntary bodies, usually religious organisations. Their governing bodies are separate legal entities. Under the School Standards and Framework Act 1998 the former ‘special agreement’ schools have been absorbed into the voluntary aided sector.

These schools provide education as part of the statutory requirements of the local authority and this is a non-business activity. The local authority funds this provision of education. The governing body will need to register for VAT if its income from non-educational activities exceeds the registration threshold.