header-logo header-logo

13 December 2024 / Liz Brownsell , Kieran Smith
Issue: 8098 / Categories: Features , Charities , Education , Tax
printer mail-detail

Charitable schools: the VAT effect

201003
With a raft of unwanted changes on the horizon, Liz Brownsell & Kieran Smith explore some of the options available to charitable independent schools
  • From 1 January 2025, independent school fees will be subject to 20% VAT. They will also face an increase in National Insurance contributions and the removal of business rates charitable rate relief.
  • There are a number of options which schools might consider as part of their strategy planning for these changes, including reallocating funds and restructuring their activities.
  • Careful planning and professional advice is highly recommended.

Charitable independent schools in England will soon face the challenge of having VAT applied to school fees effective from 1 January 2025, at the same time as an increase in National Insurance contributions, swiftly followed by the removal of business rates charitable rate relief, creating a perfect storm for the sector.

How to successfully navigate through these changes will no doubt have been dominating the agenda of most school bursars since the announcement of the imposition of VAT by the chancellor, Rachel Reeves, shortly after

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Test Article Upgrade

Test Article Upgrade

"Neque porro quisquam est qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit...""There is no one who loves pain itself, who seeks after it and wants to have it, simply because it is pain..."

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

NEWS

Family lawyers cite financial disincentives for issuing child protection orders

A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
back-to-top-scroll