Will private schools pass on the full 20% VAT?

Not necessarily. Schools have discretion over how much of the VAT they pass on to parents. Schools with healthy finances may absorb a portion. Our calculator allows you to enter a passthrough percentage from 0% to 100%.

How much do private school fees cost on average in the UK?

Average annual fees for UK day pupils range from approximately £15,000 to £20,000. London and South-East schools often charge £20,000–£30,000. Boarding schools can exceed £40,000–£50,000 per year.

Are any private schools exempt from the VAT charge?

Schools providing education primarily to pupils with SEN funded by a local authority EHCP may have partial exemptions. Nursery education for under-5s remains VAT-exempt. Free schools and academies are unaffected as they receive state funding.

Private School VAT Calculator

Q: When did VAT on private school fees start?

VAT at 20% was applied to private school fees from 1 January 2025, following the UK government Autumn Budget 2024 announcement. The policy also removed business rates charitable relief that independent schools previously benefited from.

Policy Update: From 1 January 2025, the UK government applies 20% VAT to independent school fees. Use this calculator to estimate your increased costs.

Your School Fee Details

Current annual fees per child (£) Average UK day school: £15,000–£20,000 per year

VAT passthrough: 100%

0% (school absorbs all)100% (full charge to parents)

Number of children

About Private School VAT

From 1 January 2025, the UK government removed the VAT exemption that had applied to independent school fees since the early 1980s. Schools are now required to charge 20% VAT on tuition and boarding fees.

Charitable independent schools also faced higher business rates following removal of the 80% mandatory charitable relief. The combined effect can add 10–20% to headline fees depending on a school's financial position.

Nursery education for children below compulsory school age, and state-funded places, remain VAT-exempt.

Frequently Asked Questions

When did VAT on private school fees start?

VAT at 20% was applied to independent school fees from 1 January 2025, following the Autumn Budget 2024 announcement.

Will schools pass on the full 20% VAT?

Not necessarily. Schools can absorb part of the VAT. Use the passthrough slider to model anything from 0% (school absorbs all) to 100% (full charge to parents).

How much are average private school fees in the UK?

Average annual fees for UK day pupils range from £15,000 to £20,000. London and South-East schools typically charge £20,000–£30,000. Boarding schools can exceed £40,000 per year.

Are any private schools exempt?

State-funded SEN places (via local authority EHCP) may carry partial exemptions. Nursery education for under-5s remains VAT-exempt. Free schools and academies receive state funding and are unaffected.

How does private school cost compare to state education?

State secondary schools are free at the point of use. At average post-VAT fees of around £17,500 per year, private school represents roughly £10,000–£11,000 more per child per year than the state-funded alternative.