In the 2024 Autumn Budget, the Chancellor announced that private education and boarding fees will incur 20% VAT starting from 1st January 2025.
Once private schools register for VAT, they will be able to recover VAT on their goods and services they purchase. This change could make your business more attractive for sales if you supply to private schools.
Since schools will be able to recover input VAT, it may be advantageous for your business to delay, say, carrying out building maintenance or repair work, until after 1st January 2025 to offer more competitive pricing.
However, you should not postpone issuing invoices to private schools beyond 1st January 2025 as you must always issue the invoice within 14 days of the work’s completion. If the tax point extends beyond this 14-day period, it will default to the date of the original supply of goods or services.
Please feel free to contact the office on 01227 277667 should you wish to discuss further.
