From January 2025, major changes are coming to how VAT is applied to private school and boarding fees across the UK, including Scotland. At Stratton Financial Limited, we help families and schools in Perth & Kinross and beyond understand and plan for these new tax rules.

Key Points About VAT on School Fees

• Start Date and Coverage:
  Private school tuition and boarding fees will be subject to VAT from 1 January 2025. State boarding schools remain VAT-exempt.

• Related Goods and Services:
  Items closely related to education—such as meals, school transport, exam fees, books, and stationery—are expected to remain VAT-exempt, although full details are pending from HMRC.

• Advance Payments:
  Paying fees ahead of the change (after 29 July 2024) does not avoid VAT for future tuition. HMRC will review advance payments closely to ensure compliance.

• Special Educational Needs (SEN):
  Parents paying for private SEN school places do not qualify for VAT relief. VAT exemption continues for local authority-funded SEN places.

• School Finance & Compliance:
  Schools newly required to register for VAT must prepare for complex reporting and partial exemption rules. Robust financial systems and accurate records are critical.

• Preparation for Change:
  School finance teams should audit their systems, review capital expenditures, and assess all revenue sources for VAT compliance ahead of January 2025.

How Stratton Financial Limited Can Help

We offer advice and support for schools and families navigating VAT on private education fees. Our team in Perth & Kinross, Scotland can help you prepare, make systems VAT-compliant, and avoid costly mistakes.

Disclaimer:
This summary is for general information only. VAT rules for private school fees may change, and individual circumstances differ. Always seek professional advice before making decisions or taking action. Contact Stratton Financial Limited for personalised guidance tailored to your needs.