Policy paper

Revenue and Customs Brief — removal of the VAT exemption for private school fees and boarding services

Published 29 July 2024

© Crown copyright 2024

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This publication is available at https://www.gov.uk/government/publications/revenue-and-customs-brief-8-2024-removal-of-vat-exemption-for-private-school-fees-and-boarding-fees/b73771cb-f422-46b4-b473-e7ba0ad72ec3

Detailed guidance will be published for private schools in due course.

1. Purpose of this brief

This brief gives an update in relation to VAT on private school fees following the Chancellor’s announcement on 29 July 2024.

2. Who needs to read this

Operators of fee-paying private primary and secondary schools sixth-form colleges who provide education or vocational training services for a fee.

3. Background

3.1 Changes to VAT on independent school fees

On 29 July 2024, the Chancellor announced that as of 1 January 2025, all education services and vocational training supplied by a private school, or a connected person, for a charge will be subject to VAT at the standard rate of 20%. Boarding services provided by a private school, or a connected person, will also be subject to VAT at 20%.

It has also been announced that fees invoiced or paid on or after 29 July 2024 that relate to the school terms after 1 January 2025 will be subject to the standard rate of VAT at the beginning of that term.

School fees paid before 29 July 2024 will follow the VAT treatment in force at the time of the normal tax point for these supplies, where the fee rate for the relevant term has been set and was known at the time of payment.   

Draft legislation (VAT on Private School Fees & Removing the Charitable Rates Relief for Private Schools), an explanatory note and an accompanying technical note on these changes is available.

3.2 When you will need to register for VAT with HMRC

In respect of the announcement made on 29 July, private schools that are not currently registered for VAT should not apply to HMRC to register, at this time. HMRC will be publishing further guidance on registration for schools in due course.

Where private schools currently make some taxable supplies, they may voluntarily register in respect of these supplies, in accordance with the normal VAT rules. Find out more about registering for VAT.

4. More information

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