Food: VAT

Since 1 January 2025, all education services and vocational training provided by private schools in the UK for a charge have been subject to VAT at the standard rate of 20 per cent. This also applies to boarding services provided by private schools.

Since the announcement of this policy, HMRC has taken action to support private schools through the change. This includes publishing bespoke guidance, which is available here: Charging and reclaiming VAT on goods and services related to private school fees - GOV.UK.

This guidance explains that whether VAT applies will depend on how schools charge for meals.

If meals are part of a single supply of education or boarding, the meals will have the same VAT liability as the main supply. So, for example, if a private school charges one fee for education or boarding services, and meals are included as part of the ‘package’ covered by those fees, then 20 per cent VAT will normally be charged on that package without splitting it into individual elements with individual liabilities.

Where a school supplies education or boarding and also supplies other elements for a separate fee, such as meals, these will normally be seen as separate supplies. Where meals are supplied separately, the school must determine if it is closely related to the supply of education, in which case it will be exempt, so no VAT should be applied. Generally, meals supplied during the school day will be closely related to education.