HMRC is poised to target UK families after they sidestepped private school VAT through advance payment schemes. The tax authority, operating under the Labour government, warns that independent schools which dodged Value Added Tax (VAT) on fees via prepayment deals could face penalties.
Independent schools might be confronting HMRC's fury, according to prominent audit, tax and business advisory firm, Blick Rothenberg.
Gabby Donald, a Partner at the company, explained: "The Government has made it clear that HMRC 'stands ready to challenge' the validity of private school's prepayment arrangements implemented prior to the VAT anti-forestalling provisions.
"Anti-forestalling provisions meant that prepayments made to private schools on or after 29 July 2024 for terms from 1 January 2025 were