Private Schools Face VAT and Tax Policy Changes

A recent survey by the Independent Schools Council (ISC) revealed a 1.7% drop in pupil numbers at independent schools, attributed to the impending VAT on private school fees slated for January 2025. Concerns have been raised by teaching unions and tax experts regarding the sudden implementation of this tax in the middle of the academic year, which could lead to pupil displacement and financial instability for schools. Critics, including ISC chief executive Julie Robinson, argue that the government has underestimated the impact of this policy, with some institutions already at risk of closure. Additionally, independent schools may face a 'double whammy' if the Chancellor introduces a levy on staff pension contributions, further straining their finances. Some schools have started to inform parents about anticipated fee increases due to the VAT, while others, like Ardingly College, plan to absorb part of the costs. Furthermore, a legal challenge has emerged from a parent claiming that the VAT introduction breaches human rights.