Private school blames VAT change for closure

A Christian private school has closed its doors, claiming changes in VAT rules has made its financial situation "untenable".

The independent Trinity Christian School in Reading was attended by 40 students.

It said that the government's decision to remove the VAT exemption on the fees private schools charge, along with rising business rates, was the "straw that broke the camel's back".

The Department for Education said "Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help fund public services".

In the 2024 Autumn Budget the chancellor Rachel Reeves announced the introduction of VAT on private school fees from 1 January 2025, charged at the standard 20% rate.

Trinity Christian School is a small independent family school for children aged 4-11 which "runs on Christian principles".

Its website said it "seeks to provide each pupil with a biblical understanding that helps the pupil develop their relationship with God, and equips them for life in society."

The school's accounts, filed to the Charity Commission, showed a drop in income from 2023 to 2024, as well as an increase in costs.

Governor of the school, Ruth-Abigail Williams, said: "We offer very low fees and bursaries on those fees so almost everyone who wants to come can come".

She said the school had tried to keep costs down by staff "working sacrificially on very low salaries".

Independent Schools Inspectorate reported in June 2025 that all relevant standards were being met - including quality of education.

Headteacher Naomi Moorcroft said student numbers had doubled in 2024 when it moved to a new larger building.

She said the increase in costs in 2023 were associated with the move.

"This year our projected number on roll is lower and we believe this is as a result of the addition of VAT to fees."

She added that the school's business rates had risen to £35,000 from around £5,000 per year which had become "unaffordable".

Jake Amram whose sons, aged 5 and 9, attended the school said one had struggled in a state school due to the class size.

"In the [Trinity] Christian school he was happy, lots of friends, blossomed and was getting very good at school and he came out of his shell".

He said he now had "no choice" but to send the boys to a state school.

"It is not our preferred option - we wanted a Christian school," added.

The school said it had applied for discretionary relief on business rates from Reading Borough Council.

The council said it had a "responsibility to protect public funds" and the application "was not considered eligible".

The Department for Education said "Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help fund public services, including supporting the 94% of children in state schools, to help ensure excellence everywhere for every child".

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