Northern Ireland Secretary of State Hilary Benn meets Free Presbyterian Church over fears its schools could have VAT added to fees

Independent Christian schools in Northern Ireland are among 14 that are set to have VAT added to private school fees across the UK from 1 January 2025, at the standard rate of 20%.

Rev McClung told Mr Benn that it seemed unfair that grammar schools could charge parents fees but that his church’s chools could not.

"We said this is unequal treatment if they get away with not having to charge VAT because they're in the state sector, and we have to charge VAT because we're in the private sector,” he told the News Letter.

His school charges parents £1,800 per child.

"But some of our pupils get free school meals entitlement. We are not an elite school. Our parents are not wealthy."

He noted that there are several judicial reviews ongoing in England on the matter, by schools focussed on the Christian faith or special needs.

"Keir Starmer said we're a business when we're not. We're just fundraising to make up the difference between our income from fees and what it's costing to run the school."

His school has 40 pupils from pre-school up to A-Level, with seven staff. The church has five schools, with others in Bangor, Portadown, Kilkeel and Kilskeery, Co Tyrone.

A key issue he raised was that the school is an integral part of Newtownabbey Free Presbyterian Church. So if the church reaches the £90k threshold of taxable turnover, it will have to register for VAT, file returns and charge VAT on all clubs and events.

"He said would look into our points and send us an answer. He said it was in the manifesto that we were elected to do this. But he was very accommodating and had evidently been briefed."

Rev McClung said his local MP, Robin Swann, argued the school's case in a Westminster Hall debate last week.

"He said that Section 75 of the Northern Ireland Act requires equality of opportunity and that to charge us VAT would be a breach of that. So we asked Mr Benn to address that too. "

The Department of Education responded that the 14 ‘Independent schools’ in NI legislation are equivalent to a ‘private school’ in England.

They could be caught by the new law if they meet the annual taxable turnover threshold of £90,000, it added.

The Education Minister opposes imposing VAT on these schools given the small numbers involved and “disproportionate impact on faith-based education”.

He has told the Treasury that draft legislation could capture schools "whether private or not, that charge certain fees".

The Treasury has confirmed that capital fees up to £140, charged by some grammar schools, will fall outside the scope of the legislation. But there are 12 grant-aided grammar schools which charge boarding or preparatory department fees, or capital fees in excess of £140, which may be in scope of the legislation.