VAT Advisory Services for Private School Fees
Expert Chartered Accountants and Tax Advisers for your VAT Needs
From 30 October 2024, private school and boarding fees for terms starting after 1 January 2025 will incur 20% VAT. Sterling Wells’ Chartered Tax Advisers offer expert guidance to ensure compliance with this change, helping schools navigate the process and minimise financial impact.
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★★★★★
Based on 32 reviews
How We Can Help?
VAT Registration Assistance
We will support your private school with the VAT registration process and help you ensure full regulatory compliance.
Tax Planning and Strategy
Our specialists will assist your institution in developing tax-efficient strategies to mitigate the impact on your operations.
Financial Advice
We assess your situation and provide you with tailored financial advice so that you can accommodate the additional VAT charges while remaining competitive.
VAT Compliance and Filing
Sterling Wells will manage all aspects of VAT compliance, from issuing invoices to submitting VAT returns, allowing you to focus on providing high-quality education.
Why Choose Sterling Wells?
Experienced Professionals
With years of expertise, we are trusted by hundreds of UK businesses to provide top-quality tax and accounting services.
Tailored Solutions
We deliver bespoke advice that caters to your institution’s specific financial needs.
Hassle-Free Services
Our clients appreciate our efficient, no-bureaucracy approach, making the entire process straightforward.
What Our Customers Have to Say About Us!
“We value client opinions, tailoring services to meet unique needs, and address challenges for optimal solutions.”
Sterling Wells made the VAT process smooth and stress-free for us. Their expertise helped us navigate this significant change effortlessly.
Sterling Wells’ team is incredibly supportive and guides us through every step. We can feel confident in our VAT compliance thanks to their expert advice.
We’ve worked with Sterling Wells for years, and their advice is always spot-on. They are a trusted partner for all our tax needs
Their tailored approach helped us in VAT compliance without overwhelming our team.
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★★★★★
★★★★★
5.0 Rating | 25 Reviews
★★★★★
5.0 Rating | 32 Reviews
Frequently Asked Questions
1. What is VAT and how does it affect private schools?
Value Added Tax (VAT) is a tax paid by individuals on the purchase of most of the goods of services in the UK. The VAT rate could be 0%, 5% or 20%, depending on the nature of supplies.
Currently, private schools do not charge any VAT on their school fees. However, under the new policy, they will be required to do so, starting from 1 January 2025. The 20% VAT is charged on boarding fees, and any additional extracurricular activities by private schools after school hours or during holidays, such as art lessons, sports lessons, etc.
2. Do all schools in the UK have to charge VAT now?
No. The new policy only applies to private schools. Therefore, education and vocational training provided by non-maintained special schools (NMSS) approved under Section 342 of the Education Act 1996, further education colleges classified as public sector institutions, state schools, and academies will continue to benefit from VAT exemption.
3. Will the private schools increase their fees?
While the application of VAT on private schools does not necessarily mean higher fees, some schools may choose to raise them. However, even if fees remain the same, adding 20% VAT to the current fees will result in a 20% increase for parents.
The average school fees in the UK are about £15,000 (without VAT). Including the VAT at 20%, parents will have to pay £15,000 plus £3,000 in VAT, totalling £18,000.
4. How does this policy change affect state schools?
As mentioned earlier, state schools will remain exempt from VAT. This policy change does not directly impact state schools. However, if the private schools increase their fees due to VAT, many parents might consider sending their children to state schools.
According to research by the Institute for Fiscal Studies (IFS), overall student numbers are set to fall by 700,000 by 2030. This decline suggests that the state sector will have the capacity to accommodate extra pupils without significant strain. Sir Keir Starmer has expressed confidence that this change will not lead to increased class sizes in state schools.
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