Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how much input VAT is forecast to be repayable to private schools for the first quarter that the VAT is levied; how much output VAT is expected to be raised from private schools in the first quarter; and what the net payment is to private schools for the first quarter of this implementation.

The Annex to the Government Response to the Technical Note, Government_Response_to_the_Technical_Note_on_Applying_VAT_to_Private_School_Fees_and_Removing_the_Business_Rates_Charitable_Rate_Relief.pdf, sets out the forecast input VAT and calculation of output VAT and net VAT liability resulting from this measure.

VAT revenue overall is recognised in the National Accounts on an accruals basis. As set out in the above Annex, the VAT liability in 2024/25 is time apportioned for the implementation date of 1 January 2025. The actual VAT input tax and output tax reported on VAT returns for any month or quarter will depend on various factors, including the date when schools meet the requirement to register for VAT (if not already registered), and which of the staggered quarterly accounting periods apply to the business.