If you have children that attend a UK private school, the recent announcement around VAT on school fees is likely to be a major concern.
We’ve summarised the main points of the announcement and what they mean for school fees.
20% VAT on private school fees from 2025.
Bringing private schools within the VAT system is aimed at generating higher revenues for HM Revenue & Customs (HMRC) and providing more money to invest in state education.
There’s a debate to be had around whether charging VAT on school fees is a good or bad move. But the reality is that it’s happening and it’s best to be prepared.
Here are the main points to be aware of:
Who must register for VAT.
You must register for VAT if you’re a private school or connected person that supplies education services, vocational training or boarding services and either:
When you must register
Education providers will be able to register for VAT from 30 October 2024.
The exact date when you need to register for VAT will depend on:
Payments include registration fees paid during the application process to attend a school.
If you receive payments in advance then you may need to register before 1 January 2025, depending on when you received the payment.
If you think this will affect you, contact us and we can get you registered.