FAQs: VAT on Independent School Fees
Why is VAT being added to independent school fees?
Starting January 1st, 2025, the Government has mandated a 20% VAT on the fees of independent schools across the UK. This affects all independent schools, including Bilton Grange.
How will this impact fees at Bilton Grange?
Bilton Grange must apply the 20% VAT to fees, but we are offering a 6.75% discount on the net fee to reduce the impact and reflect the savings and VAT recovery we are expecting. For instance:
- Reception: £4,470 per term (with a £302 discount), resulting in a gross payable fee of £5,002 after VAT.
- Year 8: £8,650 per term (with a £584 discount), resulting in a gross payable fee of £9,679 after VAT.
- Full Boarder: £11,770 per term (with a £795 discount), resulting in a gross payable fee of £13,170 after VAT.
This equates to an 11.9% overall increase in fees payable across all year groups. Note: Fees for children in the Nest or Little Grange Nursery remain VAT-exempt.
Are co-curricular fees also subject to VAT?
Yes, from January 1st, 2025, VAT will apply to any additional co-curricular options with educational content, such as music or sports coaching.
However, the VAT on extras will only apply to bills received in April (the Trinity Term bills) as the extras in the Lent Term relate to this Advent Term.
What should I do if the new fees are unaffordable?
Bilton Grange recognises the financial commitment our families make. If you believe the increase may require you to consider withdrawing your child, please contact us at funding@rugbyschool.net to discuss possible financial support.
What is Bilton Grange’s stance on this VAT policy?
Like other schools in the independent sector, Bilton Grange is concerned about the rapid implementation and the potential impact on families. We are committed to constructive discussions with the Government and are participating in collective efforts within the sector to address these concerns.
Is Bilton Grange part of any legal action regarding the VAT policy?
Bilton Grange supports the sector-wide legal action that questions the policy’s validity and seeks to address issues surrounding its implementation. While this legal process is ongoing, our priority remains to deliver the highest quality education to our students.
Please note that the various legal actions in process will not delay the actual implementation of VAT. That would only come about by a separate government decision. Your fees will continue to be due in full by the first day or term, now with VAT and the discount above included, unless you pay by monthly direct debit.
Will this policy change affect my child’s educational experience?
No, the VAT change will not impact the quality of education, pastoral care, or extracurricular options at Bilton Grange. We remain committed to delivering the comprehensive educational experience you expect from us.
How can I stay informed about any policy changes?
We will notify parents of any updates through email and this FAQ page. For specific questions, you can contact our finance department directly.
What happens if the Government postpones or changes the VAT policy?
Should there be any changes to the policy, including a delay in implementation, we will promptly inform parents and adjust billing as necessary.
Do other schools face similar changes?
Yes, this VAT requirement applies to all independent schools in the UK. Rugby School is working with other schools to understand and address the implications of this change and will continue advocating for the needs of our families.
I paid into the Composition of Fees Scheme, how does this affect me?
If you paid into the Scheme on or before the 28th July 2024, then your scheme payments are not expected to have VAT applied. Sadly, if you paid into the scheme on or after the 29th July, those Scheme payments will still have VAT applied. Your bill will reflect the difference but please contact the Finance Team if you would like to discuss the details.
I paid into the Composition of Fees Scheme, will I get the 6.75% reduction?
Please note that fees paid via the Composition of Fees Scheme prior to 28th July 2024 will not benefit from the 6.75% discount referred to above as VAT will not be recoverable in relation to such payments.
My child benefits from a scholarship, bursary or remission, how is that affected?
All remissions and scholarships will reduce the net VATable fee figure and therefore they will reduce the amount of VAT charged to that bill.
I pay by Direct Debit, how will this affect me?
The Finance Team will be increasing payments automatically to reflect this change. The increase will apply from January 2025. Please contact the Finance Team if you have any specific questions.
Will trips now include VAT?
No, as we understand it, VAT is not required to be applied on costs of school trips or international visits.
I have a child in the Nest or Little Grange Nursery, will I have to pay VAT?
No, VAT is only applicable from Reception and up.
I have a nursery aged child in Reception, am I exempt from VAT?
No, the legislation is clear and each child in Reception will have VAT applied to their bill, irrespective of age.
