VAT on private school fees: what it means for families

What does the VAT apply to?

HMRC's policy paper says VAT at the standard rate of 20%Source for vatSchoolFees: RatevatSchoolFees: RateCloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: will be subject to VAT at the standard rate of 20%View the official source applies to all education and boarding services provided by a private schoolSource for vatSchoolFees: ScopevatSchoolFees: ScopeCloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: all education and boarding services provided by a private school or connected person will be subject to VATView the official source. The paper also lists vocational training provided by a private school.

It also covers institutions mainly for 16 to 19 year olds where most pupils pay fees, such as private sixth formsSource for vatSchoolFees: Sixth formsvatSchoolFees: Sixth formsCloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: Institutions that are principally concerned with providing education suitable for 16 to 19 year olds and where the majority of their 16 to 19 year old pupils pay fees (for instance, private sixth forms).View the official source.

Two things are treated differently:

• Nurseries. Under the measure, a nursery school is not treated as a private school under the measureSource for vatSchoolFees: Nursery not includedvatSchoolFees: Nursery not includedCloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: (iii) which is not a nursery schoolView the official source.
• Other school costs. HMRC's paper says some goods and services closely related to education, other than boarding, continue to be exempt. Which extras on your bill include VAT is for the school to set out, so check your school's fee list or ask the bursar.

When did it start, and what about fees paid in advance?

HMRC's paper says the VAT applies to terms starting on or after 1 January 2025Source for vatSchoolFees: Start datevatSchoolFees: Start dateCloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: From 1 January 2025, all education and boarding services provided by a private school or connected person will be subject to VAT at the standard rate of 20%.View the official source. HMRC added a rule for fees paid early: fees paid in advance on or after 29 July 2024 for terms starting on or after 1 January 2025 are also subject to VATSource for vatSchoolFees: PrepaymentsvatSchoolFees: PrepaymentsCloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: Pre-payments of fees or boarding services on or after 29 July 2024 that relate to terms starting on or after 1 January 2025 will also be subject to VAT at the standard rate.View the official source.

Did every school raise its fees by 20%?

Not necessarily. HMRC says charging VAT at 20% does not mean that schools must increase fees by 20%Source for vatSchoolFees: Fees not automatically20vatSchoolFees: Fees not automatically20CloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: Charging VAT at the standard rate of 20% does not mean that schools must increase fees by 20%.View the official source. HMRC's paper says schools charging VAT can also reclaim VAT on some of their own costs, and it is a commercial decision for each school how it funds the additional costSource for vatSchoolFees: School decisionvatSchoolFees: School decisionCloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: It will be a commercial decision for individual schools how they fund this additional cost.View the official source. The paper notes that some schools have absorbed some or all of the cost while others have raised fees. The only reliable guide to what you will pay is the school's own current fee list.

How do you read a school's fee list now?

When you compare what schools publish, check three things:

1. Is VAT included? Look for whether the fee page says so. For example, Alleyn's School lists 11+ day fees as £32,490 per year, including VATSource for Alleyn's School: DayAlleyn's School: DayCloseChecked 9 Oct 2026 against Alleyn's School.The source says: | Yearly Fee - including VAT | £32,490 | £28,998 |View the official source.
2. Per term or per year? Dulwich Prep London lists its 11+ day fees as £10,085 per term, including VATSource for Dulwich Prep & Senior: DayDulwich Prep & Senior: DayCloseChecked 9 Oct 2026 against Dulwich Prep London.The source says: Years 5 to 10: £10,085View the official source. Make sure you are comparing the same period.
3. What else is charged separately? Registration fees, deposits, lunches, trips and exam fees can be listed separately, and the fee list should say whether each one includes VAT. Alleyn's lists its registration fee as £225, excluding VATSource for Alleyn's School: Registration feeAlleyn's School: Registration feeCloseChecked 9 Oct 2026 against Alleyn's School.The source says: The non-refundable registration fee is £225 plus VAT or £375 plus VAT for overseas applicants.View the official source.

Each school page on ExamKind shows the fees the school publishes, with the date we checked them. Fees change every year, so always confirm with the school before you decide.

What if my child has an EHCP?

HMRC's paper says that in England, where attendance at a private school is required by a child's EHCP, the local authority can reclaim the VAT on the fees from HMRCSource for vatSchoolFees: Ehcp englandvatSchoolFees: Ehcp englandCloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: For example, in England, where attendance at that private school is required by a child’s EHCP, local authorities will be able to reclaim the VAT on the fees from HMRC.View the official source. (An EHCP is an education, health and care plan.)

If your child has special educational needs but the private school place is your family's choice rather than one named in an EHCP, speak to the school and your council about your own situation.

Does it apply in Scotland, Wales and Northern Ireland?

Yes. HMRC's paper describes the measure as applying to private schools in the UK. For Northern Ireland, HMRC says the Education Authority, which funds placements in private schools, can reclaim the VATSource for vatSchoolFees: Ni education authorityvatSchoolFees: Ni education authorityCloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: In Northern Ireland, it will be the Education Authority who fund placements in private schools and will be able to reclaim the VAT.View the official source.

What about bursaries and scholarships?

A bursary reduces the fees a family pays, and many schools offer means-tested help. HMRC's paper does not cover bursaries, so ask the school's bursar how VAT is shown on fees after a bursary. Our guide to bursaries explains how bursaries usually work.

Where can you check the official rules?

The rules on this page come from HMRC's policy paper on VAT on private school fees (updated 15 November 2024Source for vatSchoolFees: Document datevatSchoolFees: Document dateCloseChecked 13 Oct 2026 against HM Revenue & Customs (GOV.UK).The source says: Updated 15 November 2024View the official source). For your own circumstances, ask the school, and for tax questions, use GOV.UK or a qualified adviser.

Related pages

• Independent schools: entry points, tests and dates
• Bursaries at independent schools explained
• What is a grammar school?
• Secondary school applications

Sources

Facts on this page come from archived official sources checked on 13 October 2026: HM Revenue and Customs (the policy paper "VAT on private school fees") and the fee pages of the schools named. Fee examples come from each school's own published fee page.

ExamKind is independent, is not connected with any school, and does not give tax or financial advice. How we make our content.