The government’s proposal to implement VAT on private schools starting January 1 next year may face a delay
Private schools are reporting a decline in enrollments attributed mainly to the impending VAT on fees. The Treasury has not confirmed whether the 20% VAT imposition on private school fees will proceed as scheduled from January 1, as announced by Chancellor Rachel Reeves in July. There are calls for a delay until September next year to allow private schools more time to prepare for the new tax.
Concerns have also been raised about the impact on special educational needs and disabilities (Send) sector if more pupils transition from private schools to state schools. Private school leaders express their inability to register for VAT until after the budget announcement on October 30.
Accountants and tax experts argue that organizations need more time to adapt as bills for the upcoming term are typically sent out in December. Calls for a delay have intensified following responses from an official consultation last month.
The NASUWT teaching union emphasizes concerns about potential redundancies
The Association of School and College Leaders recommends a comprehensive impact assessment before formalizing legislation and suggests delaying implementation until at least September 2025. The government is urged…
2024-10-06 05:08:01
Source from www.theguardian.com
