Geraint Jones, our Head of Private Client Tax, has contributed to an article from Tatler on how to best manage private school fee increases, in light of the VAT changes for private schools from January 2025.
Geraint Jones, Head of Private Client Tax at BKL says, however, you could still negotiate a fee reduction. ‘Several years fees could be paid in advance. Whilst this would not avoid VAT, a discount could be negotiated with the school to partly offset the VAT increase. This does come with its own risks such as the school failing, the pupil being unhappy, needing to move from the area etc.’
‘I would be wary of organisations promoting artificial avoidance schemes. History has shown that such schemes are usually successfully challenged by HMRC in the courts at great cost to the scheme user, not just in terms of financial cost but also personal stress,’ Jones adds.
The full article is available here on the Tatler website.
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