The ISC and its associations, with support from professional advisers including VWV, has sought to keep school leaders appraised of the risks, raising awareness at seminars and conferences, in newsletters and, in December 2022, issuing practical guidance on the Political and Financial Threats.
Requiring VAT to be charged on school fees would affect every independent school, be they owned privately or owned by charities and the removal of the tax benefits of charitable status would further impact charities that own and operate independent schools.
The likelihood of the changes occurring turns on whether, at the next general election, Labour are likely to be elected to power (to assess the likelihood of this, refer to the latest opinion polls); and whether their policy is likely to be enacted as new law.
Schools should continue to work together to support the ISC and its associations in their efforts to continue to lobby on behalf of the sector.
Individually, we recommend that, in addition to adding to the risk register and understanding the potential financial impact, schools should:
We are advising a number of schools on what it may be possible to do now to minimise potential future tax liabilities in the context of their constitutions, activities and strategic projects.