you don't pay VAT on Education.

HM Revenue & Customs

but the course price is higher so someone is pocketing the 20% VAT.

I'm still not with you I don't think...

As far as I see it Middlesex Uni get the £9k or whatever it is directly from the student/student loan company...

The student then pays CTC their course fee which I assume VAT is payable on because it is still flight training? Unless CTC have just succeeded where others have failed in finding a way to exempt flight training from VAT?

Am I missing something here?

Yep it is now a vocational degree under the vocational national apprenticeship scheme or what ever its called and its through an education establishment designated by the education act.

No VAT payable on vocational training.

You didn't honestly think they would go to all that effort just so the students could get a 0-9k's worth of cheap loan did you? Its to get the extra 16k plus more likely over 20k with the type rating per student profit.

Well I just wasn't convinced that HMRC would allow a major flight school to get out of its VAT requirements just because it had signed a partnership with a university...

They haven`t got much option if its set up properly.


Note the previous post that the students apply through ucas and the fee is 100k. Its all part of hoops you need to go through to get the excemption for VAT.

They can`t charge more than the max uni matriculation fee but they can launder vocational training course fees which are required.

Tax Free?
 

Isn't the Wings course tax free anyway due to the set up with the 'security bond?'

There are different taxes involved with the cadet type schemes.

But it really doesn't concern the actual student as the pay the main headline price anyway.

The tax with VAT and employers NI contributions and cooperation tax offset is dealt with by the trainer and company doing the sponsoring.

You can't have a tax free course with commercial training only with this degree thing.

The vat must be paid but eventually if you go through to a VAT registered company they can claim it back. But you as an individual can't get it back.

An airline only has to take 5 cadets on a year and it pays for the training budget for 50 plus pilots.

As much as some go on that its because of perceived quality etc etc The main line is that the accountants love it because they make money out of recruiting. If they didn't they wouldn't do it.

So easyjet has announced that they are the partner airline with CTC for this Uni course. Who knew! :ugh:

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