Private School Fees
The government has produced draft legislation that charges VAT at 20% on education and boarding services provided by private schools for a fee. However, the changes will not impact pupils with the most acute special educational needs, where those needs can only be met in private schools.
The measure will apply to fees paid from 29 July 2024 in relation to the term starting in January 2025 and future terms. Paying several terms’ worth of fees in advance will therefore not get around the new VAT charge.
The government has also published an overview of its plans to remove the eligibility of private schools in England for business rates charitable relief. It is expected that this measure will apply from April 2025.
Private schools will need to make sure that they are dealing properly with VAT compliance going forwards.
