Preparing for VAT on school fees
Phil Salmon of our VAT team has written an article on 'Preparing for VAT on school fees' that has been published by MTM consulting. Please see below for the opening of the article, for the full article, click here.
'Considerable concern has been caused by the announcement last year that, if elected, Labour will introduce VAT on school fees. Clearly the downside would be the need to add VAT to fees, which could deter your parents. However, as the majority of supplies to independent schools are exempt irrecoverable, VAT has always been a significant cost. If school fees do become taxable, this cost would be eliminated, as schools would be able to recover VAT on any VAT bearing expenditure, just like any other taxable organisation, thereby mitigating the impact.'