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Starting from January 1st, 2025, private schools in the UK will be required to apply a VAT rate of 20% on both school and boarding fees. According to HMRC Business Brief 08(2024), any fees that are invoiced or paid after... Read more
Starting from January 1st, 2025, private schools in the UK will be required to apply a VAT rate of 20% on both school and boarding fees.
According to HMRC Business Brief 08(2024), any fees that are invoiced or paid after July 29th, 2024, and pertain to school terms beginning on or after January 1st, 2025, will be considered taxable supplies.
HMRC has indicated that they will be releasing additional guidance on this matter soon.
If this change affects you and you need more information regarding sales liabilities, input tax recovery, or VAT registration, please do not hesitate to contact us.
For further details, you can refer to the official HMRC guidance here: HMRC link for guidance.
This change signifies a significant shift in the tax landscape for private education, impacting financial planning for both institutions and families. It is crucial to stay informed about the forthcoming HMRC guidance to understand the full implications and ensure compliance with the new regulations.
THE AUTHOR
Manager, Company Secretarial & VAT
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