What VAT is charged on school fees?

20% VAT will be applied to:

  • standard school tuition fees (Reception to Year 13)
  • music tuition invoiced by the school
  • registration fees

The following services are Zero-Rated (0%)

  • Transport
  • Trips abroad

The following services are exempt from VAT

  • nursery fees
  • catering
  • educational trips within the UK
  • Before and After School Clubs
  • books, materials, stationery, exam fees
  • acceptance deposits
  • the Summer Playscheme

How does the VAT apply to fee remissions such as sibling discount, bursaries and scholarships?

Percentage fee remissions will be applied to the net fee before adding 20% VAT.

Scholarships are granted as a fixed sum and will be subtracted from the gross fee.

Are children with an Education, Health and Care Plan (EHCP) exempt from VAT?

No. As the legislation currently stands a pupil who has an EHCP is not exempt from VAT.

If the EHCP specifically names the school in it and it is fully funded by the council then the council will be able to reclaim the VAT from the Government.

Why is the school choosing to discount fees before adding VAT?

On becoming VAT registered, the school will be able to reclaim VAT on certain expenditure. This has therefore been reflected in setting the new fee structure in order to support families at this time of change.

Will the School make cutbacks to its curriculum offer or provision because of the introduction of VAT?

Our priority is to ensure that we continue to provide our current excellent offering of the best available teachers and learning environment for your children. Naturally, the school will continue to make pragmatic decisions about cost savings but that is part of our longer term strategy to deliver value for money.

Can I pay fees monthly?

As an alternative to paying your school fees termly, you can opt to pay your school fees and extras via monthly repayments through School Fee Plan (a division of Premium Credit Limited). A number of our parents find this a convenient way to pay fees. To find out more about School Fee Plan and how to apply, simply click on this link.

Can I pay fees in advance?

Yes, you can enter into a Fees in Advance Scheme and pay fees up front for 2 to 5 academic years. The next opportunity to do this will be during the 2025 Summer Term, when the fees for the 2025-26 academic year have been set. This scheme provides a fund for you to draw on for your child when fees are payable including any VAT charged by the Government. Please contact the Bursar for more information.

Is help available for those who need it?

Yes. As a charity, means tested bursarial support has and will always be available. For example, we helped a small number of families for a short period of time whose circumstances changed as a result of the pandemic. This process is overseen by the Bernard Heathcote Foundation committee. Further information can be found on our website here.

The Bernard Heathcote Foundation has also extended its financial support to assist families most affected by the introduction of VAT. More information on this support can be found here.

We recognise the stringent timing of this change may be difficult. To offer additional flexibility, the VAT portion of the Spring Term fees may be paid by 10 February 2025 and the VAT portion of the Summer Term fees may be paid by 2 June 2025, by arrangement with the Bursar. An application form is available here.

What notice period is required if I want to withdraw my child from the school?

A full term’s notice is required. For example, to withdraw your child at the end of the academic year, notice must be given before the start of the summer term. Failure to provide a clear full term’s notice will result in fees in lieu of notice being charged, as outlined in the signed contract and terms and conditions.

Is there a legal challenge to this policy?

Yes. The Independent School’s Council is leading the sector’s legal action against the Government to challenge its policy on VAT on private school fees. The ISC is seeking a judicial review, which will focus on claims of breaches of the European Convention on Human Rights (ECHR) and the Human Rights Act 1998. It should be noted that the launching of this action will not delay the implementation of VAT from the 1st of January 2025.

Should you have any other questions please contact the School Bursar on bursar@dixie.org.uk.

Disclaimer: Please note that the information contained within this web page is correct at the time of writing (November 2024) based on professional advice obtained on HMRC’s guidance. This web page will be updated on a regular basis to ensure the information contained within is correct.