VAT and School Fees: What you need to know

The Government has announced that it will enact its manifesto promise to apply VAT to school fees. We have set out the essential information you need to know. Please note this article will continue to be updated as new information comes to light.

What is VAT and why is it being added to private school fees?

VAT (value added tax) is a tax on products and services, currently held at 20% until at least March 2026. Previously, private schools in the UK were exempt from this tax. The Labour Government have removed this exemption.

What does this mean for my child’s private school fees?

VAT will be added from 1^st January 2025. It is charged on any fees paid from 29^th July 2024 if paid in advance for the term starting 1^st January 2025. Schools do not have to pass on the full 20% to parents but many may have to pass on most, if not all. This means the fees charged will increase. Schools will notify current parents of the change to their fees; many have already done so.

Will Owl Tutors charge an extra 20%?

VAT is already included in our fees – they will not increase due to this change of Government policy.

What are my options if I am worried about this change?

Firstly, talk to your child’s school or prospective school. They may be able to help reassure you. Some schools have fees in advance schemes which can help to spread the cost (although any fees paid from 29^th July 2024 will still be subject to the new tax).

There may be scholarships and bursaries available. Our schools guide has information on these and we can also advise on the process and help with preparation if you are thinking about applying for academic, creative or sports scholarships for your child.

You may also be thinking about moving your child into the state sector. This process can be complicated and they may have to sit in-year assessments. Talk to us; we can help with planning for future schools and assessments. We can also advise on schools in your local area and what the options are for your child. Remember that most private schools will require a term’s notice if you wish to withdraw your child.

Home education, supported by tutoring, is also an option. Early discussion around aims and objectives can really help with this. Please do get in touch if we can help.

Calculate my school fees with VAT added