Have your school shared VAT update?

[nearlylovemyusername]

Just heard from ours, total increase will be 15%. This is on the top of annual increase of 4%.
Significant number of kids moving to grammar

We’ve had an update today, a reduction in fees from January so that the net impact after VAT is only 5%. A massive relief.

Still, if DS is given an EHCP naming our first choice state secondary for Sept ‘25 we will seriously consider our options.

A little update as well about this. A legal challenge has officially been put forward to challenge the VaT increase. It got rejected before when they tried to implement it .

Yes this week ours announced an estimated increase of 11-13% from January

@BangingOn that's really good. Would you mind me asking if it's primary or secondary and which region? big name?

@nearlylovemyusername it’s a foundation with a nursery, two preps and a secondary. Day schools, Midlands. Decent name locally but not a big name nationally. Sorry for being cryptic, I should have just name changed and named the school.

@Raaraathelionrah
could you share any links please? I've heard about this possibility, but last time we were in EU, not sure how successful this can be now. We're forced to move DC to grammar unfortunately, I can't take the risk so too late for us now, but still

These parents pay their taxes and are entitled to a state place too. Their child has as much right to it as anyone else.

My son is starting at a private school in September, there will be just 15 in his class across four forms. Many rejected the places due to the VAT increase. Normally there is around 25.
I do hope it’s still sustainable - I guess teachers will have to go.

One of ours is ‘trying to make savings’ which is the worst of all worlds. I’d rather pay more and get more.

Gosh you sound bitter and spiteful.

Our small primary in East Anglia is passing on 10% of the VAT increase from January. Quite surprised (and relieved) that they've managed to keep it down to that - they certainly haven't got much in the way of reserves and the fees are the lowest of all private primaries in the region. Class sizes in reception very low next year though.

Good to hear. I was hoping someone would.

What got rejected? The challenge to the law, or the law itself got rejected.

From what I understand, it’s possibly discriminatory to put VAT on private school fees, but not on other education and the ECHR, if it got that far, would kick it out.

I think it was Lord Pannick's Telegraph article that suggested VAT on private schools would breach ECHR law, however I read a thread by Dan Neidle on Twitter at the end of June that suggested that every UK tax lawyer would disagree with him.

I also read earlier today that a legal challenge is planned and I'm sure Xenia mentioned something about the legalities of implementing VAT on school fees on a thread here a few days ago but I can't find it now.

I tried to google legal challenge and can't find anything very recent.
Let's hope

I would believe a legal challenge cannot be materialised before the coming budget in Autumn.

Speaking of unintended consequences, we have decided to stop the not insignificant donations to our DC’s school supporting bursaries.

The bursar responded saying we weren’t the only ones, and that they would probably have to reduce the number of bursary places.

I genuinely feel for these kids.

Edinburgh here. School is still waiting for more detail but have made noises about passing on 15% VAT. Fees for this year increased 9%.
Interestingly our local council have miraculously found 1000's of extra spaces in the local high schools in the last few months after publishing their capacity figures. Schools that were bursting at the seams last academic year now have 300 extra spaces it seems. So they've obviously been told to get with the narrative that children moving to state won't be an issue...

In case this is of interest:

whatson.parliament.uk/event/cal48716

There is a list of MPs and others attending this with their contact details if you click on individuals, and it will be worthwhile emailing them with your views about the issue.

Eton can ‘absorb’ as they can offset so they’ll claim back VAT on projects. This is where overall the tax will cost the government, of course alongside the extra state school places. It will also ‘cost’ children currently in state schools as class sizes are being increased to accommodate.

In Edinburgh they’ve had to create 4000 new places for children increasing class sizes.

We’ve not heard from our school but I expect 15%, we’ve had a 7% rise this year and 8% the year before, it’s just too much for us now so we are weighing up our options.

That's really interesting, given that Edinburgh is one of the places likely to have difficulties with a surge in state numbers. 25-30% of pupils are in private education (so 10% of private school students moving to state would result in a 4% increase in state school numbers)

Any idea what's happened? Have schools increased their intake? Have they actually increased PAN (which means they need to hire teachers) or just added bulge classes?

Luckily dd finished this year, but the whole lot is being added from September 2025. They are still full apparently. Plans to claim back VAT on a large new building project.

We are in the process of buying a second home that will become our primary residence smack bang in the middle of the secondary catchment we want.

Wouldn’t VAT be much cheaper? Or are the house prices just very low there?

Oh and I think the bursaries have gone. There's a large charity involved in two full bursaries a year which are staying, and there's some minor scholarships which are more about kudos, but money off for clever local kids is being axed I think.

Same. So waiting patiently. Prep in Woodford.

This! I live in a grammar area near London and hate it. Despite DD going to one.
I hope they get rid of them all. Much like private schools they are elitist and divisive and do naff all for social mobility as they are filled with tutored kids.