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Holly MackayFounder and CEO

VAT Rules Hike Private School Fees: What You Need to Know

By Boring Money

6 May, 2025

Parents across the UK are feeling the pinch as VAT is now officially being added to private school fees. Whether you’ve already noticed the change in your termly invoice or you’re just starting to panic-Google what this means, you’re not alone.

Labour’s long-discussed policy is now reality, with private education no longer exempt from the standard 20% VAT rate. But how much more are families really paying? Are all schools affected equally? And are there any ways to soften the financial blow?

In this exclusive Boring Money guide, we break down:

  • How the VAT is being applied - and what counts as a taxable extra
  • Whether you can still use school fee planning schemes
  • What alternatives parents are exploring to keep costs manageable

If you’re wondering what this means for your wallet, future school choices, or long-term financial planning, we’ve got the answers.

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