Fees at Taunton School

We appreciate parents, current and prospective, will want certainty as soon as possible. Whilst we must await the end of the consultation period before announcing fees from Jan 2025 onwards, we hope it will provide some peace of mind to know that we do not envisage any more than a 5% overall cost increase during the course of the 24-25 academic year, despite VAT being charged at 20%.

The policy itself is consistent with Labour’s pre-election communication and manifesto, but the July announcement brings forward the presumed implementation date from Sept 2025. The policy now has the status of draft legislation, subject to a period of consultation on technical aspects. This consultation closes on 15th September.

Taunton School is committed to sharing the financial cost of VAT on fees with parents. Our aim has always been to balance the quality of the education we provide with affordability for our current and future parents.
We have committed to keeping any overall increase in costs to parents, as a result of this new policy, below 10%, phased over more than one academic year.

We had hoped that the first VAT related cost increase would be introduced in Sept 2025 but we are now forced to revise budgets and to implement an increase from Jan 2025 with the second phase likely to be applied in Sept 2025. We refer to ‘cost’ increase as opposed to ‘fee’ increase because the headline fee charged by the school, as a result of our commitment to share the 20% VAT burden, will actually decrease in the immediate term.

These are extremely challenging times for the independent school sector but we are well placed to adapt and thrive. We are confident that in sharing the impact fairly between the school and parents we will continue to achieve the right balance between an exceptional quality of education and affordability.

In brief, the Government has confirmed the following as its position before consultation:

• VAT at 20% will be applied to all fees payable from 01/01/2025. It is not expected to apply to nursery education but will apply to children from Reception upwards.
• Any fees paid from 29/07/2024 pertaining to the term starting in January 2025 and onwards will be subject to VAT.
• VAT will be applied to educational services outside the academic curriculum such as performing arts lessons and sports clubs which attract additional charges.
• The cost of boarding will be subject to the VAT charge.
• Some provision will be exempt: transport to and from school; books; before and after school childcare; school meals. Clarity will be required as part of the consultation process on a number of these areas, particularly the distinction between ‘childcare’ and ‘educational services’ outside taught lessons.
• VAT will be added to fees for all pupils including those with Special Educational Needs, those with EHCPs (Education Health and Care Plans), and those from military and diplomatic families. Local Education Authorities will be able to claim back from the Government the VAT added to the fees of children with EHCPs and the government has pledged to carefully monitor the impact on military families.
• Schools with charitable status, as is the case with Taunton School, will cease to benefit from the 80% Business Rate Relief, with effect from 01/04/2025.