2026-04-28 ยท MTD News
HMRC sets out VAT position on public funding for further education colleges
HMRC has published Revenue and Customs Brief 3 (2026), which explains its position on the VAT treatment of certain public funding received by further education institutions. The brief follows a Court of Appeal ruling on the matter.
This announcement is aimed at further education colleges and those advising them. It is not directly relevant to sole traders, landlords, or small businesses preparing for Making Tax Digital.
If you work with or supply services to a further education institution and are unsure whether this affects your VAT position, it is worth checking the brief or speaking to a tax adviser.
Source: gov.uk announcement.