Private Education: VAT

The Annex to the Government Response to the Technical Note, Government_Response_to_the_Technical_Note_on_Applying_VAT_to_Private_School_Fees_and_Removing_the_Business_Rates_Charitable_Rate_Relief.pdf, sets out the expected VAT revenue resulting from this measure and the costing methodology. The Government estimates that it will raise £460 million this year, rising to £1,725 million in 2029/30.

VAT revenue overall is recognised in the National Accounts on an accruals basis. As set out in the above Annex, the VAT liability in 2024/25 is time apportioned for the implementation date of 1 January 2025. The actual VAT liability reported on VAT returns for any month or quarter will depend on various factors, including the date when schools meet the requirement to register for VAT (if not already registered), and which of the staggered quarterly accounting periods apply to the business. VAT returns are generally due one month and seven days after the end of the accounting period.