Fees FAQ
Why is VAT being added to independent school fees?
From 1 January 2025, the Government will impose a 20% VAT on independent school fees. This policy change applies to all independent schools across the UK.
How will this affect the fees at Warwick Schools Foundation?
Warwick Schools Foundation will charge the 20% VAT as required by law. To reduce the impact and reflect the savings and VAT recovery we are expecting, we will offer an 8% discount on the net fees subject to VAT. For example:
- Full Boarding Fees (excl. lunches): £14,190 per term (with a £1,135 discount), resulting in a gross payable fee of £15,666 after VAT.
- Day Fees at Warwick School or King’s High School (excl. lunches): £5,786 per term (with a £463 discount), resulting in a gross payable fee of £6,388 after VAT. This represents an 10% overall increase in fees payable.
Are co-curricular fees also subject to VAT?
Additional services where there is an educational component, including co-curricular options such as music, drama, and sports coaching, will incur VAT at 20% starting from 1 January, 2025. However, for LAMDA and Music tuition lessons, the governing body has agreed to apply the 8% discount for this year.
I paid into the Fees In Advance Scheme, will you apply the 8% discount on my fees?
The 8% discount was put in place to mitigate the impact of VAT on fee payers. Fees paid via the Fees in Advance Scheme received prior to 29 July 2024 won’t incur VAT and so therefore the 8% discount to mitigate against the VAT increase won’t apply. In addition, VAT incurred won’t be recoverable by the school in relation to such payments.
If you have paid a proportion of your payment through the Fees In Advance Scheme, you will receive the discount on the remaining proportion of the amount that was not paid through the scheme.
My child receives a scholarship, bursary or remission, how is that affected?
VAT will only be charged on the amount paid by the fee payer – anyone who receives a scholarship, bursary or other remission will pay the 20% VAT on the amount payable by the parent.
Will school trips now include VAT?
No, as VAT is not required to be applied on school trips that are educational, international or non-profit-making.
Will VAT be added to the Holiday Action club?
No, Holiday Action Club is a holiday club for childcare in the school holidays which has activities rather than tuition, and so will not be subject to VAT.
Will VAT be added to Swim School fees?
Yes, Swim School does qualify as tuition, and so will have VAT levied.
Will VAT be added to before and after school clubs?
This depends on whether the particular club is childcare or tuition. Any clubs deemed to be tuition will be subject to VAT.
Do other independent schools face similar changes?
Yes, this VAT requirement applies to all independent schools in the UK.