Why Is There VAT on School Uniforms?

Clothing and shoes for young children are charged at zero rate VAT. But for older children — or those that are taller than average — school uniforms attract the full standard VAT rate of 20%.

One problem is that there is no definition of "young children" in VAT law. The 0% VAT threshold is based on how big an average child will be on their 14th birthday. So clothes for older or larger children are taxed — including their school uniforms.

Why can't we scrap VAT on school uniforms?

HMRC's reasoning is that if VAT was scrapped on school uniforms, it's possible that some adults would start wearing them to take advantage of the saving.

Over the years there have been viable proposals for VAT exemption, such as that items of school uniform that include a school logo could be exempt. This was not supported by the Government at that time, but perhaps it's time for another look.

Exceptions

If a school is only for pupils under age 14, the zero rate can be applied however large the clothes are, as long as they include the school's logo. The same applies for organisations such as Cub Scouts or Brownies that are run for children under 14.

If you have queries about any aspect of VAT, please get in touch.