The Implications of VAT for Private Schools
As some will know, the new Labour government announced the mandatory introduction of VAT to be added to school fees across the UK from 1 January 2025. This means that any private school with a fee income greater than £90K per year will now be required to register for and charge VAT on school fees from the time that threshold is reached.
Since Melville-Knox Schools charge low fees compared to some of the UK’s larger private schools this introduction of VAT proportionally affects us slightly less, however there is still a significant impact and cost to our parents, many of whom are not high income earners.
Due to the £90K threshold, some of our smaller schools aren’t yet affected, but we expect that our largest school in Glasgow will be required to introduce VAT to fees from August 2025. The introduction of VAT for the school in Glasgow will collectively increase fees in the region by £27K in the coming academic year, a cost which will be born by parents. This additional cost will be of no benefit to the school, unless we embark on a costly capital building program. Instead, this money will directly be handed over to the HMRC, and as the school continues to grow, the collective additional cost to parents will increase year on year.
It should be noted that Christian schools in the UK do not receive government funding. Neither do we as parents, who have our children in a Christian school, receive any rebate on our taxes for not using a place in a state school. Thus, we effectively already pay twice for our children’s education. With the prospect of VAT being added to fees, we will now have a triple whammy to grapple with.
Christian parents, who for reasons of conscience cannot place their children in a state school where educational standards have already plummeted, will have to count the cost with an increasing financial burden that is unjust and unequitable. This comes from a government who champions “equality”. As usual, some are more equal than others…
Please join us in prayer for the continued provision for the families we serve at our schools, and for the leaders in our country.
”I exhort therefore, that, first of all, supplications, prayers, intercessions, and giving of thanks, be made for all men; for kings, and for all that are in authority; that we may lead a quiet and peaceable life in goodliness and honesty.” – 1 Timothy 2: 1-2
