ATT comments on VAT and private school fees

The Association of Taxation Technicians (ATT) has submitted comments on a technical note and draft legislation relating to the application of VAT to private school fees. 

The technical note and draft legislation propose that standard rate VAT will be applied to any private school fees (including boarding) paid from 29 July 2024 in respect of terms starting on or after 1 January 2025. 

Our main concern is that the proposed commencement date does not give sufficient time for schools or HMRC to adequately prepare and deliver the proposed changes. Commencing part way through an academic year could also introduce additional difficulties for schools and pupils. We suggest that consideration should be given to deferring commencement to September 2025. 

We are also believe that the proposal for ‘closely related’ supplies of goods and services to remain exempt should be revisited. This could introduce complexity, increase the risk of value shifting and is not in keeping with established HMRC practice.

Further details of the above, and our other comments on the draft legislation and technical note can be found in our full submission.