Introduction
From January 2025, independent schools will face major changes to their budgets as the UK government introduces VAT on school fees. The removal of tax breaks for private schools will affect tuition fees and charitable business rate relief and will potentially affect how schools manage their operations.
This change may come as unwelcome news, but there are ways to mitigate its impact, which is exactly what our education finance experts will cover in this blog.
What are the upcoming independent school VAT changes?
Starting on 1st January 2025, the standard 20% VAT rate will apply to private school tuition and boarding fees. While there is speculation that schools may not pass on the full cost of VAT to parents, fee structures will undoubtedly be reviewed. Additionally, from April 2025, independent schools that hold charitable status will lose their 80% charitable business rates relief.
Stretching your budget with digital solutions
With these changes approaching, schools should start finding ways to make their operations more efficient—especially in areas like digital services, where there’s plenty of potential for cost savings.
As schools look to tighten their purse strings, an often-overlooked area is their digital presence. Websites, marketing and branding, and communication tools can often feel like a drain on resources, but they don’t have to be. Here are three top tips to help you save on your digital services and reduce your VAT spend.
1. Using VAT reclaim on business expenses
The VAT changes are not all bad news; however, as of January 2025, independent schools will be able to reclaim VAT on digital services like website design, hosting, and marketing. This means that your school can invest in digital solutions while saving 20% on the costs through VAT refunds. It might be a good opportunity to consider upgrading your website or refining your marketing strategy to attract new families, as you can now reclaim VAT on these services. 
2. Consolidate your digital services
Many schools use multiple suppliers for different digital services—one for website hosting, another for marketing, and yet another for pupil management systems. By consolidating your services with a single provider, you can often negotiate better rates and streamline your operations in the process. A single digital platform can also cut down on admin, freeing up your team to focus more on engaging with pupils. 
3. Upgrade to a modern, cost-effective website
A school’s website is more than just a marketing tool—it’s a reflection of your brand and a key factor in attracting prospective families to your independent school. With the impending VAT changes, many parents may explore more affordable educational options, making your online presence more critical than ever. Investing in a high-quality, affordable website now could pay off in terms of pupil retention and new enrolments. 
Don’t let VAT changes affect your school’s performance
While the VAT changes will certainly affect independent schools' finances, the above are just some of the ways to soften the blow—especially regarding your digital services. By accessing and improving your online presence and current digital resources, you can not only save money but also ensure that your school stands out from the crowd and remains competitive.
Act now and prepare for the future
With VAT changes hitting independent schools next year, now is the time to give your website the attention it needs. As school fees may be set to rise, many parents will start exploring alternatives. The quality of your brand can make or break your pupil retention and your ability to attract new families.
Your website and marketing have never been more important, and we have a range of website design options, ranging from basic to standard and premium, to help you stand out from the competition. 
We can help you combat the rising cost of VAT
At Juniper, we specialise in cost-effective, high-quality, independent school websites that don’t break the bank and have website packages that suit all budgets.
Check out our portfolio, which includes over 60 real schools, academies, and trusts that are already enjoying the benefits of our services.
Or take, for example, Clare Whitlock, the Marketing Manager from Lingfield College, who said this after upgrading their website:
With an education-specific CMS and design agency quality, you’ll be blown away by the affordability of our websites.
Reach out today and ensure your independent school is ready for the changes ahead!
