Private Education: VAT
The question
To ask the Chancellor of the Exchequer, whether she plans to introduce leniency provisions for private schools through the initial implementation of VAT.
Answered by James Murray
Since 1 January, 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 on 29 July, HMRC has taken action to support private schools through the change: providing detailed guidance, creating a bespoke mailbox for technical queries, running webinars, and allocating additional resource to process VAT registration applications.
HMRC guidance on VAT penalties and interest is available here: VAT penalties and interest - GOV.UK. This includes guidance that a penalty may be cancelled or amended if the taxpayer has a reasonable excuse. It also explains that the late submission penalty rules do not apply to your first VAT return if you are newly VAT registered.
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