The UK government recently announced that starting from January 1, 2025, a 20% VAT will be levied on fees for private and boarding schools across the UK to help support public finances and recruit and train approximately 6,000 teachers, expected to generate £1.5 billion for the government (1).
What is VAT?
VAT stands for Value Added Tax, which is a type of consumption tax in the UK set at 20%. Previously, the UK government exempted all private school fees from VAT; however, under the new policy, all private schools will need to charge a 20% VAT, which will undoubtedly lead to a significant increase in tuition fees. Nonetheless, as most private schools operate under charitable trusts and receive institutional donations, alumni support, or various grants to subsidize their expenses, it is estimated that not all schools will fully pass on the tax to students, and tuition fees will not uniformly rise by 20%. Some schools have indicated that tuition will increase by 10% to 15%.
What Impact Does VAT Have on Current Students?
Synchro Overseas Education has received numerous inquiries from parents expressing concern that tuition fees will suddenly increase significantly, adding to their financial burden and disrupting their children's planned educational pathways. If schools pass the VAT onto tuition fees, we anticipate that some families may be forced to transfer schools, withdraw, or switch to different programs due to high costs. In fact, VAT not only affects students; schools may face operational difficulties due to reduced enrollment and increased costs, potentially leading to closures.
How to Successfully Access Top Universities Without VAT Impact?
[Enroll in Schools Not Affected by VAT]
Since the announcement of the new policy, some schools have stated that they will not pass on the VAT to tuition fees, which is great news for parents!
1) INTO Newton A level Programme @University of East Anglia﹝2﹞
- The only A-Level program taught on a university campus, offering high-quality A-Level courses
- Excellent academic reputation, particularly in STEM subjects
- Outstanding A-Level results, with over 50% of students achieving A*-A in 2024
- A cumulative 91% of students were successfully admitted to medical schools
- Students advance to top universities in the UK and beyond, including Oxford, Cambridge, UCL, Imperial College London, and LSE
- After adding 20% VAT on other boarding schools, the overall cost of this program will be lower
Example:
Private Boarding School
- Tuition and accommodation per year (average): £45,000 – £60,000 + 20% VAT
- Accommodation type: Shared or single rooms
INTO Newton A Level
- Tuition and accommodation per year (average): £41,394 - £52,162 (depending on room type)
- Accommodation type: Single rooms with private bathrooms
2) Bosworth Independent School﹝3﹞
- Located in the center of Northampton, about 1.5 hours from London Heathrow Airport
- Small class sizes, with an average of 10 students per class
- Excellent results, with 85% of students achieving A*-C in A-Level; 41% achieving A*-A in GCSE
- Several students were admitted to UK G5 universities, including 14 studying medicine or related fields
- Support programs are available for students intending to study medicine
- Well-equipped facilities with various extracurricular activities
- Scholarships specifically for international students
- Tuition and accommodation per year (average): £42,975
[Transition to Foundation Courses After Completing GCSE]
Features of Foundation Courses:
- A one-year program conducted on university campuses with small class sizes allows university facilities access
- Over 90% of universities offer foundation courses covering a wide range of subjects, including business, finance and management, computing, law, arts and design, engineering, social sciences, medicine, health sciences, pharmacy, media studies, and humanities
- Successful completion and achievement of specified grades guarantee progression to the first year of a linked university
- Admission requirements: completion of Form 5/GCSE
- Tuition: average £15,000 - £29,000 per year
For students completing Form 5 or GCSE, enrolling in a foundation course not only saves a year but also allows students to focus on their desired fields of study, adapt to university learning modes, and prepare thoroughly for future university studies!
[Enroll in Public Schools]
Parents may consider applying for a BNO Visa for their children to attend public schools in the UK, with tuition fees waived. However, it is important to remind parents and students that applicants must have a UK address to submit applications to the local school district. Additionally, we anticipate that the implementation of the VAT policy will lead to more students currently in private schools transferring to public schools. Therefore, we generally recommend that parents submit applications as early as possible, as formal offers may only be received after arrival.
If students and parents want to know more about studying abroad, please call 2111 1480 or WhatsApp 5117 4380 to talk with our professional education consultant at Synchro!
References:
1. Private school fess – VAT measure
https://www.gov.uk/government/publications/vat-on-private-school-fees/applying-vat-to-private-school-fees
2. INTO Newton A level Programme
https://www.intostudy.com/en/universities/newton-a-level-programme
3. Bosworth Independent School
4. British National (Overseas) visa