Navigating changes to VAT on school fees
By CHRIS CALVEY

With changes in VAT for private school fees looming, we want to ensure we have an open conversation and be as transparent as possible about what we’re doing and how it may affect you.
By CHRIS CALVEY
With changes in VAT for private school fees looming, we want to ensure we have an open conversation and be as transparent as possible about what we’re doing and how it may affect you.
The legislation kicks into action from January 2025.
This is a difficult moment for both parents and schools. VAT-on-fees has been in discussion for a few years and as soon as the change in government looked likely, we started to push forward with a plan to make sure we were ready.
VAT will be chargeable on fees from primary-aged children, right through to end of secondary school who are privately educated. Boarders’ fees will also be liable, as will children with special educational needs (SEN) who don’t have an Educational Health and Care Package (EHCP) funded by the Local Authority (LA).
Whether the full 20% is passed on to the fee payers is at the discretion of each individual school. In hot pursuit of the VAT-on-fees change, April 2025 will also see a change in business rates for schools operating as charities. Historically they’ve benefitted from an 80% rate reduction. This is being removed. A reality that’s likely to hit many smaller schools extremely hard.
A big part of the reason we’ve joined forces with Ardingly College is to give us stability and resilience. Without the backing of a larger-scale school, Great Walstead would have been less likely to offer substantial support to parents. As it is, both Ardingly and Great Walstead will increase fees by only 5% from January 2025, and a further 5% (for a total of 10%) at the start of the next academic year (Sep 2025). The schools will absorb the remainder of costs in order to ensure that our families don’t suffer.
As much as possible, we want to make sure this increase doesn’t cause families hardship and mean huge upheaval or stress.
There’s obviously a balance to strike as we won’t compromise the exceptional quality of our teaching and resources. This has, and always will be, our primary objective. With the children and their experience at the centre of the picture.
If you want some more information to help get to grips with these changes, here are some useful links:
https://educationhub.blog.gov.uk/2024/11/01/vat-private-schools-everything-you-need-to-know/
https://www.tes.com/magazine/news/general/guidance-on-vat-on-private-school-fees-confusing-says-isc
https://lordslibrary.parliament.uk/independent-schools-proposed-vat-changes/
https://www.fortus.co.uk/blog/vat-changes-on-private-school-fees/
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