VAT on School Fees

January 1, 2025

Big changes today for English Schools. Following legislation by the Labour Government, 20% VAT is now being added to private school fees after new rules came into force today, 1st January.

The government plans to spend the money raised on more teachers for state schools in England. It is thought 7% of all English pupils go to a private school. Fees of £50,000 a year to send a child to Eton will now increase to £60k.

There has been some fallout already. Private schools say they have already seen a drop in secondary school pupil numbers because of higher fees, ironically meaning the number of pupils attending state schools will increase.

The changes do not apply in Scotland.

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