Paying School Fees in Advance

Looking through the Budget Overview and technical consultation documents on the Gov website, it has the statement: "Pre-payments of fees or boarding services on or after 29 July 2024 that relate to terms starting after 1 January 2025 will also be subject to VAT at the standard rate. The changes will take effect from 30 October 2024." Within the technical consultation there is the statement: " If a private school invoices or takes payment on or after 29 July 2024, but before 30 October, and this relates to the school term starting on or after 1 January 2025, VAT will be due on the first day of that term." Does this means that if I have made a pre-payment before 29 July 2024 for terms in 2025 and 2026, there will be no VAT due on that pre-payment? This seems like a really simple question, but one that I can't seem to get an answer for.

Hi,
Please see the following link:
Check if you must register for VAT if you receive private school fees
Thank you.

Is that a yes or a no? The link you provided appears to confirm that any payment made before 29/07/24 will not be subject to VAT however I have read contradictory interpretations that suggest that is not the case. It would be good to have a black and white confirmation.

Hi OWRC.
The guidance states:
How payments made before 29 July 2024 will be treated will depend on the specific terms of any agreement for the payment.
Where the payment creates a tax point for VAT purposes when the payment is made, no VAT will be due. A tax point is normally created when a service is performed or a payment is taken for a supply of goods or services.
You can find out more about tax points in:
VATTOS3000 of the VAT Time of supply HMRC internal manual.
Check if you must register for VAT if you receive private school fees
Therefore if a payment is made before 29th July and it is clear that the payment is relating to the supply of private education after January 1 2025 then this will create a tax point prior to the introduction of VAT on private education.
Thank you.