A Christian private school in Reading, England, closed after the UK government removed the VAT exemption on private school fees, imposing a 20% standard rate from 1 January 2025. The change, combined with rising business rates, made the school’s finances untenable, prompting its closure in March 2026.
From 1 January 2025, private school fees became subject to the standard 20% VAT rate.
The change is expected to raise £1.8 billion a year by the 2029/30 fiscal year.
The school cited the new VAT charge and a jump in business rates to £35,000 as making its finances untenable, leading to closure.
Business rates rose from roughly £5,000 to £35,000 per year.
No, the school’s application for discretionary relief was rejected by Reading Borough Council.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
HM Revenue & Customs · about 7 hours ago
HM Revenue & Customs outlines its vision, policies and expectations for working with third‑party software developers, emphasizing the importance of commercial products in the administration of UK tax and customs. The collection includes policy papers on strengthening standards, strategic approaches, and external integration, aiming to support a healthy software sector and modernise the tax system.
GOV.UK · 1 day ago
The UK government’s Simplified Customs Declaration Process (SCDP) offers a two‑stage electronic declaration method that reduces border controls for authorised traders. Importers must be pre‑authorised, hold an EORI number, and submit a supplementary declaration within ten calendar days of the reporting period’s end, keeping records for four years.
BBC · 1 day ago
Trinity Christian School in Reading closed after 13 years, citing the removal of VAT exemption on private school fees and rising business rates as the main reasons. The UK government introduced VAT on private school fees from 1 January 2025 at the standard 20% rate, expected to raise £1.8 billion a year by 2029/30. The school’s business rates increased to £35,000 from about £5,000, and its application for discretionary relief was denied.
RossMartin · 2 days ago
HMRC’s Brief 9 confirms that supplies of locum doctors are exempt from VAT under Item 5, Group 7, Schedule 9 of the VAT Act 1994. The guidance also explains how businesses can claim refunds for over‑declared output tax on such supplies made within the last four years, and notes that HMRC is reviewing policy and will issue updated guidance in due course.
UK Government · 2 days ago
HMRC has released guidance (GfC18) to help businesses in the oil and gas sector determine the VAT place of supply for services. The document outlines special place of supply rules, general rules, fixed establishment rules and other factors that may affect VAT treatment. It is intended to reduce the risk of errors and penalties.
LinkedIn Article by Laura Chipp · 3 days ago
The article explains how the place of supply rules for travel services differ from standard B2B and B2C rules, highlighting key exceptions such as accommodation, transport, restaurants and event admission. It details how the Tour Operators Margin Scheme (TOMS) shifts the place of supply to the supplier’s location, offering potential VAT savings for UK and non‑UK businesses. Practical examples illustrate how different scenarios can change whether UK VAT is due.
