Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the potential impact of applying VAT to private school fees on children attending extracurricular activities at private schools, despite not attending them.

My right hon. Friend, the Secretary of State for Education, has made no assessment of the impact of applying VAT to school fees on children who do not attend private schools but may utilise their facilities.

The 20% standard rate of VAT applies to all education services, vocational training and boarding services provided by private schools for a charge. The VAT treatment of services delivered by third-party providers at private schools, for instance, self-employed music teachers or organisations that rent out private schools’ facilities, are unaffected by this policy. These services will always have been subject to VAT, if the provider is VAT-registered, unless it is private tutoring of a subject ordinarily taught in schools, which is exempt from VAT.

However, any before or after school childcare, or childcare-based holiday clubs, that consists solely of childcare and does not fall within the definition of education will remain exempt from VAT by virtue of the fact that welfare services are exempt from VAT.

HM Revenue and Customs have published guidance on charging and/or reclaiming VAT on good and services related to private school fees, which can be accessed at: https://www.gov.uk/guidance/charging-and-reclaiming-vat-on-goods-and-services-related-to-private-school-fees.