- The new Labour Government plans to remove the VAT exemption on private school fees
- Under the new policy, education services, vocational training, and boarding services provided by private schools will be subject to VAT at 20%
- Goods and services closely related to education, such as school meals and books, will remain exempt from VAT
- Pupils with Special Educational Needs in private schools funded by the Local Authority can apply for a VAT refund
- The policy is set to apply from 1 January 2025, with fees paid from 29 July 2024 onwards subject to VAT
- Private schools should review advance payments received, determine taxable supplies, and prepare for VAT registration before the new rules come into force.
Source: essentiaglobalservices.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.
