VAT on schools fees from January 2025

Private school fees will no longer be exempt from VAT from 1 January 2025.

Anti-forestalling provisions will be in place from 29 July until 30 October 2024. This means that any pre-paid fees paid for the first term of the school year will continue be exempt from VAT until 30^th October.  However, this does not apply for the second term of the year and any fees paid for that term will be subject to VAT charges, even if they are paid before 30 October.

Other points worth noting:

• VAT will also apply to board and lodging fees (but not other services such as wrap-around child care, holiday clubs, etc.).
• Private school nursery classes (defined as schooling of children below compulsory school age) will remain exempt from VAT.
• Fees for pupils with acute special educational needs, where those needs can only be met in private schools, will continue to be exempt from VAT.

Why has the government decided to charge VAT on private school fees?

The government are introducing VAT to private school fees in order to increase revenue to meet the promises they made regarding the education sector in their election campaign.

What do private schools need to do?

If you are a private school which is not already VAT registered, you will need to register for VAT (Find out how to register here).  However HMRC’s current guidance states that you should not register now and that they will publish guidance on how and when to do this in due course (Revenue & Customs Brief 8 (2024)).

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