Parents who paid school fees in advance, and therefore avoided paying VAT, may still be liable for the tax, experts have told The Guardian.

The experts said HMRC would scrutinise the schemes to check whether they included specific details such as set prices, without which parents could receive a VAT demand in the future. The main consideration is how each scheme’s ‘tax point’– billing for each term’s fees – is defined. Government sources said that if the schemes failed to give details of what the money was buying at the time it was paid, then VAT was likely to be due.

Dan Neidle, a tax lawyer and the founder of Tax Policy Associates, said many schools used fee in advance schemes like a deposit, with parents deposited a lump sum with the school, and the school subsequently deducting each year’s fees.

Neidle said: “We reckoned [there’s] a high chance that didn’t work from a VAT perspective, because VAT then applies at the point each year’s fees are invoiced. The question is whether HMRC will be challenging these.”

A government spokesperson said: “The Office for Budget Responsibility has already factored in the increased use of pre-payment schemes in its revenue forecasts. Removing tax breaks for private schools is expected to raise £1.8 billion a year by 2029-30.

“This funding will help us recruit 6,500 new teachers and improve standards in state schools, which educate 94% of children.”