Eton College

Eton College has written to parents informing them that it is adding the full 20% VAT to its school fees from January, taking its annual fees from almost £53,000 to more than £63,000, The Times has reported.

The letter stated: “While this news was not unexpected, the provost and fellows regret that the government has chosen to tax education in this way, Furthermore, we are disappointed that the introduction of VAT will take place part way through the academic year and at short notice.”

The letter continued: “We will be reviewing the detailed legislation when it is available to determine whether there are nay elements of our educational provision which may be VAT exempt or zero rated but at present it appears unlikely that these will be material.

“We have taken extensive specialist advice. We are very aware of the impact that VAT will have on parents and, now that the new government is in place and has confirmed its intentions, we wanted to provide you with as much clarity as we are able to so that you can plan accordingly.

“Parents will know that we have no latitude to reduce VAT itself: 20 per cent will need to be added to whatever fee Eton charges and so the amount due will be governed by the level of that fee. Please be assured that we are continually reviewing our cost base to ensure we keep costs as low as possible, while not compromising the quality of the education we provide.”

Parents with sons receiving 100% bursaries are unaffected by the changes, and those with partial bursaries will have that increased to cover the VAT cost.