Due to new legislation, from 1 January 2025, all education services provided by all fee paying private primary schools, secondary schools and sixth form colleges will be subject to VAT at the standard rate.
VAT will also need to be charged on Boarding Fees.
Private schools will also need to charge VAT on any extra supplies of Education they charge a fee for after school or school holidays for extracurricular activities eg Performing Arts or Sports Classes.
The legislation excludes nursery age children and adult education.
Other related fees eg stationery, books, meals and transport will remain exempt from VAT.
Fees will be caught by the VAT Charge even if they are paid in advance, if they were paid after 29 July, 2024, which is the date the legislation was brought in.
Private schools that are not already registered for VAT will need to be registered for VAT before 1 January, 2025 with HM Revenue and Customs.
Accounting systems may need to be updated for filing VAT Returns as they will need to be Making Tax Digital compliant.
Lorraine Mitchell
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