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HMRC internal manual

VAT Government and Public Bodies

Local authority education services: related activities: careers services

Some local authorities provide a careers advice service for which schools must pay. This is in competition with private sector suppliers and is therefore a standard-rated business activity.

However, in the circumstances where the Secretary of State for Education directs a local authority to provide the service in the absence of a suitable private sector provider then this supply is treated as non-business and the local authority is able to recover any VAT it incurs providing this service under Section 33.

The Education Manual VATEDU28500 provides information on the historical position of Careers guidance services including Connexions.