Navigating VAT on School Fees: Essential Strategies for Private Schools

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The impact of VAT on school fees is a significant concern for many. We are happy to speak with private schools ahead of the webinar to understand your worries and discuss how we can support you. Please contact us here, and don’t forget to sign up for the webinar.

Government Consultation on VAT on school fees:

The UK government is seeking input on the specifics of how VAT should be applied to private school fees, following their decision to impose a standard 20% VAT on these fees starting from 1 January 2025. As such there is an ongoing consultation which is set to close on 15 September 2024.

The consultation focuses on various technical aspects, such as the definitions of what constitutes a private school and related entities that might be impacted by this policy. It also explores the potential challenges and unintended consequences of the proposed VAT application. We will obviously talk about this in our webinar but are also gathering collective thoughts and concerns from our private school clients and contacts as part of our response to the consultation.

If you are a private school and wish to reach out to us in advance of the webinar, please email us here and we will connect you for a free 30 min consultation with a partner from our private schools’ team.

This insightful webinar will cover the following topics:

Conducting financial reviews for private schools: Identifying and implementing cost-saving measures
Maximising charity exemptions
Maintaining school facilities
Diversification of income: Laying the groundwork for proper income accounting
Enhancing endowment revenues
Understanding the ‘no retrospective effect’ of these changes
Exploring VAT recovery opportunities
Ensuring continued support for special educational needs and disabilities (SEND)
Blocking of pre-payments
Capital goods scheme and reclaiming VAT

As VAT registrations will be required by 1 January 2025, with an ability to register from 30 October 2024, together with the potential to voluntarily register for VAT sooner, we can assist with guiding you through what is best for your school, assisting setting up systems and processes, as well as working out how much historical VAT can be claimed, where possible.

Shona and Sandy will also address common questions from private schools regarding VAT on school fees. Please submit your questions ahead of our webinar.