Over half of parents with children in private schools are likely to feel the impact of the upcoming VAT on school fees. Starting in January, private school fees will be subject to VAT. As a result, many High-Net-Worth Individuals (HNWIs) are considering transferring their children from private to state schools.
Who Will Be Impacted, and How?
Recent research highlights the significant impact the VAT on private school fees could have. The study analyzed responses from 2,000 HNWIs and found that 993 parents had children attending private schools.
For more information on VAT on Private Schools, Get in touch with Sterlingwells.
Are HNWIs Unhappy with VAT on Private School Fees?
According to an expert, the government’s decision to add VAT to private school fees is largely unpopular among wealthy families, particularly because it will take effect in January rather than at the start of the next academic year.
Even before this announcement, rising costs in recent years have already been putting pressure on parents, making it harder to afford private education.
The accounting for VAT on private schools will apply as for other businesses; VAT paid on taxable purchases will be deducted from the VAT collected on revenue, with the balance payable to HMRC.
