Are you a parent worried about private school fees?
From 30 October 2024, school and boarding fees for school terms starting on or after 1 January 2025 will be taxable at the standard rate of VAT of 20%.
Education providers that charge school and boarding fees should check if they need to register for VAT because of these changes.
What can parents do if they are struggling?
- Find out whether your school offers any support systems or discounts.
- Some parents have considered moving house as a result of higher private school fees, to areas where there are better state schools.
- If grandparents are helping out, consider impact on inheritance tax. Gifts up to £3,000 in a tax year can be given tax free.
- If you are planning private school fees for the future, it may be worth speaking to a financial adviser.