As of July 2025, the UK government is proceeding with its plan to apply Value Added Tax (VAT) at 20% to private school fees—a change that will affect the 2025–26 academic year, which begins in just a few weeks. This is one of the most significant policy changes to impact UK independent schools in recent decades, and it’s already influencing school fees, admissions strategies, and how families plan their children's education.

What’s changing?

From September 2025, most independent schools in the UK will need to begin charging 20% VAT on tuition and boarding fees. While some legislative details are still being finalised, many schools are preparing for VAT to apply from the start of the new academic year. For a full boarding school with fees around £45,000 per year, this could mean an increase of up to £9,000 per child per year—unless the school has taken measures to reduce the impact.

How are UK schools responding?

Schools are adapting quickly to support families and remain competitive:

1. Advance Payment Deadlines Have Passed. Some schools offered families the option to pre-pay multiple years’ fees before VAT came into effect. These schemes were typically offered during late 2024 and early 2025 and have now closed in most cases.

2. Fee Repackaging. Some schools are adjusting how they present and bundle fees—separating out tuition, boarding, and extras—to manage VAT exposure. It’s important to check offer letters and fee breakdowns carefully.

3. Expanded Bursaries and Scholarships. In response to rising fees, many schools are increasing their bursary and scholarship budgets. High-achieving international pupils—particularly those with strong academic and English language skills—may find new opportunities available.

4. Refined Recruitment Strategies. While some selective schools are limiting intake from China to maintain international diversity, others—especially smaller or regionally located schools—are actively seeking to enrol Chinese pupils and offering excellent support.

5. Investment in Overseas Campuses. Some leading schools are expanding their presence abroad, launching international campuses where fees are not subject to UK VAT. These may offer a similar curriculum, though not the full UK boarding school experience.

What parents should do?

If your child is due to start school in the UK this September 2025, or if you’re planning ahead for 2026 entry, here are Mantora’s latest recommendations:

1. Clarify the VAT Status. Contact your child’s school to ask: “Will VAT be added to our fees this September?” If you haven’t already paid in advance, you should assume that VAT will apply unless the school confirms otherwise.

2. Review Total Education Costs. Ensure you have an accurate understanding of the full cost of schooling post-VAT. Check whether the quoted fees include boarding, tuition, and additional charges—and whether VAT is itemised.

3. Consider Excellent Regional Schools. Some lesser-known boarding schools outside major cities offer a warm, supportive environment and better value for money—particularly important now that fees are rising.

4. Apply Early for 2026. With financial pressure increasing, competition for places and bursaries is expected to rise. Early applications give your child the best chance of success and access to fee support.

5. Enquire About Financial Support. Don’t hesitate to ask about scholarships or bursaries. Many schools have updated their policies this year and are more open to international applicants with strong academic potential.

At Mantora, we work directly with UK boarding schools and stay fully informed of policy changes, fee adjustments, and admissions trends. We can help you:

Understand the full cost of education under the new VAT rules

Compare schools offering the best value and support

Navigate competitive admissions and scholarship applications

Find a school that matches your child’s academic goals and personality

The VAT change is real, and it’s already transforming the landscape of UK private education. But with the right planning and expert advice, your child can still access a top-quality British education.

Get in touch with Mantora today for one-to-one guidance tailored to your family’s needs.