In its comments on the government’s proposal to remove private school fees from the VAT exemption, the ATT outlines its principal concern around timing, with VAT applied to fees paid from 29 July 2024 in respect of terms starting on or after 1 January 2025.
This, says the ATT, does not give schools or HMRC time to prepare: ‘Commencing part way through an academic year could also introduce additional difficulties for schools and pupils. We suggest that consideration should be given to deferring commencement to September 2025.’
The Association also suggests that the government revisit the proposal for ‘closely related’ supplies of goods and services to remain exempt, given this could introduce complexity, increase the risk of value shifting and ‘is not in keeping with established HMRC practice’.
In its comments on the government’s proposal to remove private school fees from the VAT exemption, the ATT outlines its principal concern around timing, with VAT applied to fees paid from 29 July 2024 in respect of terms starting on or after 1 January 2025.
This, says the ATT, does not give schools or HMRC time to prepare: ‘Commencing part way through an academic year could also introduce additional difficulties for schools and pupils. We suggest that consideration should be given to deferring commencement to September 2025.’
The Association also suggests that the government revisit the proposal for ‘closely related’ supplies of goods and services to remain exempt, given this could introduce complexity, increase the risk of value shifting and ‘is not in keeping with established HMRC practice’.
