English UK engages one of the Big Four global accountancy firms for specialist advice
5 December 2023

English UK engages one of the Big Four global accountancy firms

English UK takes pre-emptive action on behalf of member centres

Earlier in 2023 English UK was informed about a VAT dispute between HMRC and a member centre. This raised the possibility that VAT would be chargeable on entire tuition fees in cases where agents/ educational tour operators pay this net of commission.

This case was resolved without the need for a tribunal. However, English UK has decided to take pre-emptive action in order to provide member centres with the best information and guidance. This guidance is especially important when course programmes are sold through agents/ ETOs instead of directly to students.

What action is English UK taking?

English UK has instructed Deloitte, one of the Big Four global accountancy firms, to provide them with up-to-date sector-specific VAT advice. This advice will allow English UK to provide up-to-date guidance to its member centres. Deloitte will also host a webinar exclusively for members. The guidance and webinar will be available in early 2024.

English UK last commissioned specialist VAT advice in 2010. It is now vital that the association updates its guidance and remains on top of HMRC's interpretation of current VAT legislation.

Is there a cost to members for this advice?

Yes, instructing Deloitte to provide this ELT sector-specific VAT advice has generated additional costs for English UK that are not covered by the membership fees. English UK has agreed to charge member centres a flat additional fee in 2024. This additional fee will cover the cost of this advice, split between the membership.

Member centres will receive an email about this in the first week of December.

Members can contact Membership Director Huan Japes if they have any further questions about the fee and the guidance.

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