- The brief updates on VAT changes for private school fees after the Chancellor’s announcement on 29 July 2024.
- It is relevant for operators of fee-paying private primary and secondary schools and sixth-form colleges.
- From 1 January 2025, education and vocational training services by private schools will be subject to a 20% VAT.
- Boarding services by private schools will also incur a 20% VAT.
- Fees invoiced or paid on or after 29 July 2024 for terms starting after 1 January 2025 will be subject to the new VAT rate.
- Fees paid before 29 July 2024 will follow the VAT rules applicable at the time of payment.
- Draft legislation and explanatory notes on these changes are available.
- Private schools not currently registered for VAT should wait for further guidance from HMRC.
- Schools making some taxable supplies may voluntarily register for VAT according to normal rules.
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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