Mark Fenwick

VAT - Co-Investments



I have a couple of questions with regards to adding VAT onto the employers 5% co-investment:

Is this only for employers that are VAT registered?

When we return our ILR data would the co-investment figures include VAT or not? 

Many thanks 


No one has replied to this post.

Martin West

The amount is an actual amount in pounds to the nearest whole pound (excluding VAT)

Mark Fenwick

Thank you Martin


May i ask, does this apply to all employers who are due to pay the co-investment, or only those who are VAT registered?

Martin West

Value added tax (VAT)
P237 Supplies of training or end-point assessment, which are paid by government funding, including the apprenticeship levy, are exempt from VAT. This includes additional payments (see paragraphs P116 to P133). Prices entered onto the ILR must not include VAT (see paragraph P240).
P238 You are responsible for determining the VAT treatment on your invoices to employers.
P239 The ESFA does not provide advice on VAT. You must always seek your own advice on VAT from HMRC if you are in any doubt about VAT treatment.
P240 If you add VAT to invoices, and the employer is VAT registered, the employer may be able to recover that VAT through its VAT returns. In determining the costs of training or end-point assessment, an employer will need to check with you if VAT will be added and verify, internally or with HMRC, if it can be recovered.