The government has moved towards granting for-profit higher education firms VAT advantages to put them on “the same footing” as universities – although some firms have already gained that advantage by switching to non-profit status.

HM Revenue and Customs published on 12 September its consultation on the government’s proposed VAT exemption for higher education provided by for-profit firms. The plan was first announced in this year’s Budget.

Universities benefit from a VAT exemption, meaning that they do not have to add VAT, currently at 20 per cent, to the tuition fees charged to students. The government wants to end what it sees as a competitive disadvantage for for-profit providers on VAT and fees.

“The UK government wishes to facilitate a more diverse and competitive HE sector that offers greater student choice and is responsive to student demand,” HMRC’s consultation says.

Read the full article at Times Higher Education