VAT on private school fees has been a labour government policy commitment for some time, and private schools will be obliged to add VAT to fees in respect of periods from 1 January 2025 onwards. Fees will be caught by the VAT charge even if paid in advance, as long as they were paid on or after 29 July 2024, that being the date on which special anti-forestalling legislation was brought in.
The legislation is targeted at fees charged for students of school age, together with those under 19 in settings such as sixth form colleges but excludes children of nursery age and providers of adult education. VAT will have to be charged on boarding fees (board and lodgings), but other closely related supplies such as meals, stationery, books and transport will still be VAT exempt.
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