FAQs: VAT on Independent
School Fees

From January 1st, 2025, the Government will impose a 20% VAT on independent school fees. This policy change applies to all independent schools across the UK.

Rugby School 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 a 6.75% discount on the net fees subject to VAT. For example:

• Boarding Fees: £16,400 per term (with a £1,107 discount), resulting in a gross payable fee of £18,352 after VAT.
• Day Fees: £10,400 per term (with a £702 discount), resulting in a gross payable fee of £11,638 after VAT. This represents an 11.9% overall increase in fees payable.

Yes, all additional services with an educational component, including co-curricular options such as music, drama, and sports coaching, will incur VAT at 20% starting from January 1st, 2025. All parents should already have received a revised Optional Extras Co-curricular Information booklet. For those not yet in the School this is available from Admissions.

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.

Rugby School recognises the financial impact this may have on families. If you feel this increase may necessitate withdrawing your child, please contact us at funding@rugbyschool.net to discuss possible financial support.

Rugby School, along with other institutions in the independent sector, has expressed concern over the policy’s potential impact. We are committed to engaging constructively with the Government to explore more balanced solutions.

Rugby School supports collective efforts within the independent sector to address concerns over the policy’s implementation timeline and impact. The legal approach seeks to raise questions about the policy’s validity and fairness. While legal action is ongoing, our focus remains on providing excellent education and support 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.

We will keep parents informed of any significant updates regarding VAT on fees via email and our website. For general questions, please refer to this FAQ or contact the school’s finance department directly.

Should there be any changes to the policy, including a delay in implementation, we will promptly inform parents and adjust billing as necessary.

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.

The School is determined that the VAT change will not affect the quality of education, pastoral support, or our co-curricular offerings. Our commitment to delivering an exceptional experience remains steadfast, regardless of the policy’s financial impact.

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.

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.

All remissions and scholarships will reduce the net VATable fee figure and therefore they will reduce the amount of VAT charged to that bill.

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.

No, as we understand it, VAT is not required to be applied on costs of school trips or international visits.