Government plans to impose VAT on private schools starting next year may face a delay due to concerns raised by various organizations in the education sector. The Treasury has not confirmed whether the 20% VAT on private school fees will be implemented as scheduled on January 1. Many believe that postponing the VAT imposition until September of the following year would allow schools more time to adjust and register for the new tax.
Leaders of private schools have expressed their inability to register for VAT as the plans have not been solidified in law yet and won’t be until after the budget announcement on October 30. Accountants and tax experts argue that the limited time for organizations to adapt to the changes could lead to administrative chaos. The NASUWT teaching union highlights concerns about potential redundancies in the private sector and the impact on teacher jobs.
In response to the proposed VAT, the Chartered Institute of Taxation and the Association of Taxation Technicians have recommended delaying the implementation date to September 2025 for effective preparation. Julie Robinson of the Independent Schools Council echoes the sentiment that the January 1 deadline is not feasible for many stakeholders.
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