- UK Labour government plans to remove VAT exemption from private education fees
- Likely to start in 2025/26 school year, introducing 20% VAT on fees
- Private schools trying to avoid price rises through advance payment schemes
- Government has options to prevent VAT avoidance, including retrospective liabilities and anti-forestalling provisions
- School contract terms may undermine VAT avoidance through advance payments
- Some schools looking to split services to retain some VAT exemption benefits
Source: vatcalc.com
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.
