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
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