Private Education: VAT

Question

Ending tax breaks for private schools will secure additional funding to help the government deliver its commitments to the 94% of children who attend state schools.

As a result of the January start date, the VAT policy is forecast to raise £460 million in 2024/25.

The government will use this funding to help deliver its commitments relating to education and young people, where the government has announced at Budget a £2.3 billion increase to the core schools budget for financial year 2025/26, increasing per pupil funding in real terms.

Since the announcement on 29 July, HMRC has taken action to support private schools through the change: providing detailed guidance; and allocating additional resource to process VAT registration applications. HMRC continues to engage with schools and the organisations that represent them.