VAT to Be Added to Private School Fees from January

Published on July 30, 2024

The government has confirmed that VAT will be charged on private school tuition and boarding fees from January 2025, midway through the next school year. Exchequer Secretary to the Treasury James Murray told the House of Commons on Monday that the VAT charges will also apply to the prepayment of fees for terms starting in January, made on or after 29 July, 2024. This means that parents will not be able to avoid the changes by paying tuition in advance. Independent schools will also be losing their eligibility for charitable rates relief under business rates from April 2025. Mr. Murray said before announcing the plans, “The Government are committed to addressing unfairness in the tax system and raising revenue for public services by closing loopholes and tackling tax avoidance.”...

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