Registration guidance for private schools published

Education providers must check if and when they need to register for VAT to prepare for VAT being chargeable on school and boarding fees warns HMRC in new guidance. From 30 October 2024 school and boarding fees for school terms starting on or after 1 January 2025 will be taxable at the standard rate of VAT of 20%.

HMRC says schools will be able to register for VAT from 30 October. But the exact date when they need to register for VAT will depend on the value of school fee payments received for terms starting on or after 1 January 2025 and the date they received the payments.

The department has also published guidance on charging and reclaiming VAT on goods and services related to private school fees.

Neil Warren independent VAT consultant said: ‘One of the main challenges...