VAT and indirect taxation specialist, Jonathan Main, provides some thoughts.
It is too early to claim that the dust has settled but we can at least start to see the road ahead. With that in mind, this article provides practical guidance to deal with the challenges for your school.
What is a private school?
Draft legislation uses the term ‘private school’ to define the institutions which may be subject to VAT. A ‘private school’ provides full-time education or vocational training for a fee paid to educate a specific student.
In addition, a ‘private school’ is an ‘institution’, such as a sixth form college, which is wholly or mainly concerned with charging fees for teaching students from school leaving age until the day before their 19th birthday. It must provide full-time education for that cohort of students. HMRC guidance repeatedly refers to 16 to 19 year olds, whereas the draft legislation refers to students under the age of 19.
A private school is not a nursery school or an independent training or learning provider.
These changes will impact independent schools and colleges, specialist schools including non-maintained special schools, and specialist colleges…