Private Education: VAT
The question
To ask the Chancellor of the Exchequer, when her Department plans to publish the income generated from applying VAT to school fees in 2024-25.
Answered by James Murray
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’s estimate of the revenue is £460 million in 2024/25, rising to £1,725 million in 2029/30.
This costing has been certified by the Office for Budget Responsibility.
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.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →