VAT on Private Tuition

For individuals and businesses delivering private tuition, it can be difficult to know whether VAT should be charged. The correct VAT treatment depends on how the tuition is supplied, who provides it, and whether the subject falls within the rules for exemption. This means private tuition supplied by an individual tutor may be treated differently from education services supplied through a company or wider tutoring business.

Getting the VAT position right is essential. If you fail to charge VAT when it is due, incorrectly apply an exemption, or do not register for VAT when required, HMRC may raise assessments, charge interest and apply penalties. Tutors and education providers must also make sure they pay tax correctly and keep records that support the VAT treatment applied.

If you need advice on whether the VAT exemption applies to the tuition delivered by you or your business, The VAT People can help. Our consultants provide clear, practical guidance on VAT for tutors and education providers, helping you understand your VAT liability, manage compliance and reduce the risk of HMRC challenge.

Speak to The VAT People today for expert advice on which educational services are exempt from VAT and when you need to charge VAT on private tuition services. Call 0161 477 6600 or complete our online enquiry form to request a call back.

Why choose The VAT People for assistance with VAT on private tuition?

VAT on education services can be difficult to apply correctly, particularly where a business provides a mix of private tuition, training, boarding, educational clubs or other associated services. While some private tuition may qualify for VAT exemption, VAT can apply to other tuition fees, boarding fees and related education services where the exemption conditions are not met.

Mistakes can lead to underdeclared VAT, missed registration obligations, penalties and HMRC enquiries. The VAT People can help tutors, education providers and training businesses understand their VAT position and apply the correct treatment with confidence.

Our support can include:

• Reviewing whether the private tuition VAT exemption applies
• Advising sole traders, partnerships and limited companies on their VAT obligations
• Assessing whether a subject meets the “ordinarily taught” requirement
• Checking whether VAT registration is required
• Reviewing invoices, records and VAT return treatment
• Supporting businesses with HMRC queries or disputes

With more than 29 years of experience, The VAT People provides clear, practical advice to help education providers stay compliant and avoid unnecessary VAT risk. For tailored guidance on VAT for private tuition, contact The VAT People on 0161 477 6600.

FAQs about charging VAT on private tuition

What is the current VAT rate for private tuition?

If private tuition does not qualify for VAT exemption, the supply will usually be subject to the standard rate of VAT, which is currently 20%. From 1 January 2025, the VAT position also changed for private schools, with education, vocational training and boarding services supplied by private schools becoming subject to VAT at the standard rate. This change does not mean all private tuition is automatically subject to VAT, but it does make it more important to check the correct treatment.

Where VAT applies, a VAT-registered tutor or tuition business must charge VAT on its fees and account for that VAT through its VAT returns. Whether VAT applies will depend on factors such as who supplies the tuition, how the business is structured and whether the subject is ordinarily taught in a school or university.

Where the exemption does not apply, tutors should ensure they understand whether they are required to register for VAT and how VAT should be shown on invoices. The VAT People can review your tuition services and confirm whether exemption applies or whether VAT should be charged at the standard rate.

Do I need to register for VAT if I offer private tuition services?

If you offer these services as a sole trader or individual teacher, and the subject is taught regularly in a number of schools and/or universities, you will not need to register for VAT. If either of these conditions is not met, you may need to register if your income from these services exceeds the VAT threshold.

The current VAT threshold is £90,000 per annum, and businesses or individuals that deliver tuition must be VAT-registered if they exceed this registration threshold and deliver services that are not exempt from VAT.

When is private tuition VAT exempt?

Private tuition can qualify for VAT exemption, but only where specific conditions are met. The tuition must generally be supplied by an individual teacher, rather than through a limited company or by an employee, and must relate to a subject ordinarily taught in a school or university.

This means a sole trader tutor may qualify for exemption, and in some cases a partner in a partnership may also qualify. However, tuition supplied through a limited company, or by employees or subcontractors, is less likely to be treated as exempt private tuition.

The subject condition can also require careful review. Some subjects are clearly ordinarily taught in schools or universities, while others are less certain. Tutors should not assume that all educational services are treated in the same way for VAT purposes, particularly in light of wider discussions around private school fees and VAT.

Where the exemption does not apply, VAT may be chargeable if the tutor or business is VAT-registered or required to register.

Is VAT applicable to online/virtual private tuition as well?

Online courses and tuition are typically taxed at the place of supply. This means that if you are based in the UK, you will need to follow UK VAT rules, no matter where your students are based. As such, the same rules apply to online courses as to tuition carried out in person: if the subject is regularly taught in schools or universities, and you are providing the tuition as a sole trader, it is exempt from VAT. Otherwise, you must pay the standard rate.