Eton College is set to receive a £4.8m VAT rebate as its headmaster picks up a 40 per cent pay rise.
Under new laws, private schools will be able to reclaim taxes on capital expenditures they have made over the past 10 years – meaning Labour could be forced to hand back millions of pounds to the wealthiest schools in Britain.
Eton College – one of the richest boys boarding houses in England which has educated 20 of the last 58 Prime Ministers – is expected to receive an almost £5 million kickback for its recent spendings including a new swimming pool and state-of-the-art boarding house.
Analysis by The Telegraph of Eton’s annual financial statements from the past four years found that the school spent around £42.5m on capital expenditure – meaning they could reclaim at least £4.8m from the Government.
The total amount they are owed will likely be much higher given the fact that under this legislation schools can reclaim money for spending from up to 10 years ago.
Eton College awarded its headmaster Simon Henderson (left) a 40 per cent pay rise despite increasing school fees by 20 per cent to cover Labour’s new VAT charge
A spokesperson for Eton College (pictured) said: ‘It would be inappropriate to speculate on figures whilst the full details of the policy remain unclear’
Meanwhile Eton College awarded its headmaster a 40 per cent pay rise despite increasing school fees by 20 per cent to cover Labour’s new VAT charge.
School fees for the elite school will be raised from £53,000 to almost £63,000, according to The Times.
A letter sent to parents in August insisted that the school had ‘no latitude’ to absorb the cost and reduce the impact on fees except in the case of students on full or partial bursaries.
But over the weekend it was revealed that Headmaster Simon Henderson is now being paid between £370,000 – £380,000 per annum- an increase of about £100,000 from his salary in the previous year.
Comparatively, the average headteacher in Britain earns £73,335, according to the Office for National Statistics.
However, this figure does not differentiate between secondary and primary school heads, with secondary headteachers typically earning more.
A spokesperson for Eton College said: ‘It would be inappropriate to speculate on figures whilst the full details of the policy remain unclear.
‘All our school capital projects are funded from the endowment fund and donations.
‘In August, we informed parents of our expectation that, in January 2025, we would be able to recover VAT on certain products and services.
‘While the specifics remain unclear pending the release of the full policy, we plan to prioritise the rebates to help those with greatest need.’
A Treasury spokesman said: ‘In general, VAT rules will apply to private schools in the same way as they apply to every other business, including for capital goods.’