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VAT on school fees anybody else worried?

(90 Posts)
helmethead Sat 19-Jun-10 15:49:06

20% increase on school fees could happen on Tuesday - I presume failing independent schools could then become free schools? Only raise £100m though a drop in the ocean of debt.

OrigamiYoda Sat 19-Jun-10 15:51:43

says who can you link to the info

sue52 Sat 19-Jun-10 17:24:13

Much as I would like to see that happen, it is highly unlikely.

sarah293 Sat 19-Jun-10 17:27:19

Message withdrawn

said Sat 19-Jun-10 17:29:12

Couldn't give a shit tbh OP

southeastastra Sat 19-Jun-10 17:32:32

huh? oh so the free school idea is just to save the less better independent schools so you can get them free! ah yes that makes sense! hahahaha

RollaCoasta Sat 19-Jun-10 17:46:27

I think you've misread - they're saying that VAT could rise to 20%.

If people can't afford the extra 2.5%, they can always set up a free school in their garden shed.

Lizcat Sat 19-Jun-10 17:49:23

This was a potential outcome of Tuesdays budget in the money section of todays times.
We trying to work out if we can run the fees through the company claim back the VAT and then put the ex-VAT cost against drawings like the revenue let us do with petrol and other motoring expenses.
I have to say in defence of this one of the main reasons DD is at a private school is due to the level of before and after school care and all the extra activities happen at school enabling me to work long hours.

said Sat 19-Jun-10 17:50:49

How could you put the fees through your company????? On what basis would it be a business expense?

TheFallenMadonna Sat 19-Jun-10 17:51:33

Hmm. Yes. Tightening up any loopholes like that might be quite a good thing...

usualsuspect Sat 19-Jun-10 17:54:07

Thats just wrong though fees as a business expense! shock

ChasingSquirrels Sat 19-Jun-10 17:54:41

umm, HMRC don't let you do that with personal expenses - it is called tax evasion. They don't like it al all.

ChasingSquirrels Sat 19-Jun-10 17:55:30

you could of course put it through the company, claim the VAT and then treat it as a benefit in kind, on with you are taxed and the company pays class 1a nic. that would be fine.

usualsuspect Sat 19-Jun-10 18:00:07

and benefit fraudsters get slated on here!

sue52 Sat 19-Jun-10 18:04:50

Lizcat tax evasion is illegal. I am horrified.

UnquietDad Sat 19-Jun-10 18:06:52

Yaaaaawn. School fees going to be more expensive. How my heart bleeds.

Lizcat Sat 19-Jun-10 18:07:01

Exactly as ChasingSquirrels describes all drawings are on tax returns and I pay tax on all of that so not classed as business expense is part of my income. As partnerships which I am one are allowed to do on motoring expenses and private health care.

CerealOffender Sat 19-Jun-10 18:08:34


sue52 Sat 19-Jun-10 18:11:58

This sounds like a loophole that needs tightening. School fees are hardly in the same category as motoring expenses.

smallwhitecat Sat 19-Jun-10 18:16:39

Message withdrawn

saggarmakersbottomknocker Sat 19-Jun-10 18:22:24

I don't have a problem with private education. Your cash, your choice. I do have a problem with cheating the system. If they put VAT on school fees then you should pay it. Or is it the same old story - avoiding paying into the pot is fine - taking too much out in the form of benefits etc isn't?

sue52 Sat 19-Jun-10 18:25:01

I don't see anyone gloating. |I'm about to start paying stonking great school fees. I'm just fed up with other parents moaning about how unfair it is that they might have to pay a bit more. It is our choice to educate our children privately.

wannaBe Sat 19-Jun-10 18:26:13

firstly, not everyone who sends their child to private school is loaded. Lots of people who send their children to private school make other financial sacrifices in order to be able to afford to give their children a better education. If fees go up then it will hit some people. And however much people want to gloat about that, it is worth considering the impact on children when their education needs to be disrupted if the parents can no longer afford the fees.

Secondly, there are an awful lot of loopholes that need closing that mean that the self-employed can avoid (not evade) paying vast amounts of income tax. I know a lot of self employed who are not earning vast sums of money, but who do not pay more than approx 15% income tax.

But when i suggested that the self-employed need clamping down on I was absolutely slated for it, because obviously no-one who is self employed would ever put anything through expenses in order to avoid paying tax on it - oh no. hmm

sue52 Sat 19-Jun-10 18:31:07

Yeah Yeah anyone who pays school fees is a martyr. As I said earlier VAT on fees is highly unlikely to happen, so don't get too stressed.

ReneRusso Sat 19-Jun-10 18:33:14

If private school becomes unaffordable for many, then lots of children will have to be educated by the state system, which will increase costs to the taxpayer, offsetting the money raised by VAT. So I don't think they will do it.

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