Private Schools: Can You Reclaim VAT?

With VAT now applying to private school fees, many schools are wondering if they can reclaim VAT on their costs. The good news is that VAT recovery is possible—but only if done correctly. Schools must carefully structure their finances to maximise VAT recovery while staying compliant with HMRC rules. Failing to act now could mean unnecessary costs and compliance risks.

📌 What Schools Need to Know

• Pre-registration VAT recovery – Some VAT on past purchases may be reclaimable.
• Capital Goods Scheme – VAT on high-value assets can be recovered over time.
• Separate charges matter – School meals, books, and extracurricular activities must be invoiced separately to qualify.
• VAT grouping benefits – Schools with subsidiaries can use VAT grouping to improve cash flow.
• HMRC scrutiny – Incorrect claims risk audits and penalties—compliance is key.

📌 How to Get Ready

• Register for VAT now – Delay could reduce reclaim opportunities.
• Review cost structures – Identify reclaimable expenses and separate VAT-able charges.
• Seek expert advice – Understanding VAT rules now can prevent costly mistakes later.

With school fees rising, VAT recovery could provide much-needed financial relief. Now is the time to review your school’s approach and ensure maximum VAT efficiency.