Parents of privately schooled kids face paying VAT in January

The parents of children at private schools face having to pay VAT on their fees as soon as January – nine months earlier than forecast.

It had been expected that Labour’s policy to impose the 20 per cent levy on private school fees would not come into effect before the beginning of the school year in September 2025.

But The Sunday Times reported last night that the change could be implemented as early as this coming January.

The controversial new levy, which ministers expect will raise an estimated £1.6billion a year to fund an extra 6,500 teachers in the state system, is set to be included in Chancellor Rachel Reeves‘ first Budget this autumn.

It had been expected that Labour’s policy to impose the 20 per cent levy on private school fees would not come into effect before the beginning of the school year in September 2025 (Stock Photo)

The controversial new levy is set to be included in Chancellor Rachel Reeves’ (pictured) first Budget this autumn 

It comes after Ms Reeves previously said she was committed to the plan because ‘the children who are struggling most are in state schools – young people are not getting the chance to fulfil their potential’.

Shadow education spokesman Bridget Phillipson also insisted all private schools can ‘cut their cloth’ to avoid passing on the cost of Labour’s planned tax rise.

She said state schools have had to make ‘some pretty tough choices in recent years’ which independent schools could learn from.

In an interview with the Mail last month, Ms Phillipson also ruled out making any fresh exemptions for special schools – despite a backlash.