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If VAT is added on Private School Fees, then it will be added onto University fees as well

539 replies

AgathaCrispee · 31/01/2024 08:06

Does it worry you that this new policy of adding VAT on educational fees will also be applied to university fees as well?

AIBU to think this will put university out of the reach of the majority of families who will support their kids through Uni?

Also, for those who do go the level of debt they will come out with will be really big.

If they can apply VAT to private school educational fees then they've setup a case for Independent schools argue that it must be applied to Uni as well.

Is this going to create a situation where only the wealthy can send their kids to Uni?

I'm wondering why no one is asking this question!!

OP posts:
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Araminta1003 · 31/01/2024 12:50

Charitable status is not a red herring because they also want to remove the business rates exemption which affects charities more widely potentially as well.

The point is that these kind of changes are going to need proper scrutiny not fly by night VAT Notice implementation. If they want to do this in the first budget they better do the work now.

AgathaCrispee · 31/01/2024 12:49

Maray1967 · 31/01/2024 12:45

This - from a univ lecturer.

The two are not the same. My eldest needed a degree to do his job. He did not need a private school education.

This argument doesn't work either though.

Would you out VAT on a philosophy degree but not a law degree?

One isn't needed to do a job, but the other is.

This proposal is a sweeping statement, fraught with problems.

OP posts:
Araminta1003 · 31/01/2024 12:49

It is not simple in the 16-18 bracket surely? Can private schools then split that age group? Given that is where most are?

AgathaCrispee · 31/01/2024 12:46

Another76543 · 31/01/2024 12:43

Given that the so-called experts couldn’t agree on the VAT treatment of a Jaffa Cake, forgive me for being sceptical about how straightforward it will be to impose VAT on certain areas of education.

We'll now call this argument the Jaffa Cake principle.

Nailed it 😂

This is exactly what I'm talking about.

OP posts:
minipie · 31/01/2024 12:46

Haven’t read the whole thread.

Charitable status is a red herring.

The 20% VAT on private school fees would be implemented by changing the current law on VAT which says education services are exempt from VAT.

They would change it to something like “educational services are exempt from VAT except for educational services provided by Schools”.

They would then need to define what Schools means in a way that doesn’t catch universities, tutors, Saturday schools, maths clubs etc etc. This is tricky but by no means impossible.

I’d hope they’d also try to carve out SEN schools but that will be harder to do.

Essentially, the govt can tax or not tax whatever they want, it’s just about getting the legal wording right and then voting it through.

skippy67 · 31/01/2024 12:46

Floating voter my arse.

Maray1967 · 31/01/2024 12:45

Blaggingit123 · 31/01/2024 08:12

University education, while paid for, is essential (to both people who need to gain qualifications and to the needs of the country), private primary/secondary education is not. Private education can’t be essential because there is an alternative way of accessing the same qualifications without paying.

This - from a univ lecturer.

The two are not the same. My eldest needed a degree to do his job. He did not need a private school education.

EasternStandard · 31/01/2024 12:44

Another76543 · 31/01/2024 12:43

Given that the so-called experts couldn’t agree on the VAT treatment of a Jaffa Cake, forgive me for being sceptical about how straightforward it will be to impose VAT on certain areas of education.

😬

Araminta1003 · 31/01/2024 12:43

“It’s simply not going to happen, so you’re going to have to live with the terror of VAT on university fees.”

So unis that are private profitable businesses won’t attract a sales tax but private schools that are charities will?

Another76543 · 31/01/2024 12:43

LongTimeListener1 · 31/01/2024 12:33

Your question is “is it workable to find some form of wording the distinguishes between private schools and universities”? We can all debate what unreasonable means, but again while I don’t have the highest opinion of politicians, this does not strike me as even remotely a challenge in avoiding accidentally implementing a £3bn tax hike.

Given that the so-called experts couldn’t agree on the VAT treatment of a Jaffa Cake, forgive me for being sceptical about how straightforward it will be to impose VAT on certain areas of education.

Araminta1003 · 31/01/2024 12:37

And we also have uni trauma because our places are being sold abroad to the highest bidder, that is a fact, well documented in even the most basic of newspapers.
That does not mean we do not have sympathy for squeezed academics and lost EU funding. It does not mean we disagree that academics should be paid more, for example. Our unis are so important, it is one of the things this country still does well. So it is important to ask what is going to happen to tertiary education going forward when a new Government is adopting a gimmicky moral policy on a part of the Education sector. What next springs to mind?
Education is big business and a huge cost, just like health and questions need to be asked.

EasternStandard · 31/01/2024 12:35

cyclamenqueen · 31/01/2024 12:32

Some of them still think this . Then there was their science and tech spokesman on Times radio yesterday who said that the policy was about making independent schools pay VAT on their purchases like state schools have to. This is rubbish , state schools reclaim their VAT through either a s126 for academies or s 33 for LEA schools . In comparison independent schools pay VAT on their purchases and h fee this policy will now. Enable to reclaim. Incidentally this will benefit the big rich schools who build swimming pools and theatres but not the smaller less rich schools whose main cost is teachers salaries.

another Labour MP yesterday on the radio called the fact that there is no VAT on school fees a tax deductible …, what ? They also keep conflating charitable status and VAT rather than understanding that it’s the nature of the supply not the supplier which determines VAT status , hence the whole Jaffa cake scenario.

I will still vote Labour but Keir really needs to get them some training on the basics . Frankly the media don’t understand it either but sooner or later someone will start grilling them .

They are as hopeless on a few issues

LongTimeListener1 · 31/01/2024 12:34

Araminta1003 · 31/01/2024 12:33

Why is anyone surprised that there is such low confidence in politicians of whatever ilk? Is it not documented that public confidence is at an all time low? What are Labour going to do about restoring confidence?

Spell out the policies in detail please. We already have Brexit trauma. And Covid PTSD from random rules and policies. Of course we are not going to have blind faith in a moral tax and believe there won’t be unintended consequences. This is an attack on children and the Education sector at large.

It’s simply not going to happen, so you’re going to have to live with the terror of VAT on university fees.

Araminta1003 · 31/01/2024 12:33

Why is anyone surprised that there is such low confidence in politicians of whatever ilk? Is it not documented that public confidence is at an all time low? What are Labour going to do about restoring confidence?

Spell out the policies in detail please. We already have Brexit trauma. And Covid PTSD from random rules and policies. Of course we are not going to have blind faith in a moral tax and believe there won’t be unintended consequences. This is an attack on children and the Education sector at large.

LongTimeListener1 · 31/01/2024 12:33

Another76543 · 31/01/2024 12:30

Precisely. The current plan is still a policy position. It’s not unreasonable to question whether a policy position is workable, especially when it seems to be one of the only policies as things stand.

Your question is “is it workable to find some form of wording the distinguishes between private schools and universities”? We can all debate what unreasonable means, but again while I don’t have the highest opinion of politicians, this does not strike me as even remotely a challenge in avoiding accidentally implementing a £3bn tax hike.

crikeycrumbsblimey · 31/01/2024 12:32

No

cyclamenqueen · 31/01/2024 12:32

Another76543 · 31/01/2024 12:11

The Labour Party have already illustrated that they don’t understand basic VAT law (they suggested that removing charitable status was going to lead to VAT being payable). It took them a while to realise that it wouldn’t. Given the lack of basic understanding, it’s not unreasonable to question whether or not university fees would be captured (inadvertently or otherwise), especially as the VAT exemption for universities is in the same part of the VAT rules as private schools.

Some of them still think this . Then there was their science and tech spokesman on Times radio yesterday who said that the policy was about making independent schools pay VAT on their purchases like state schools have to. This is rubbish , state schools reclaim their VAT through either a s126 for academies or s 33 for LEA schools . In comparison independent schools pay VAT on their purchases and h fee this policy will now. Enable to reclaim. Incidentally this will benefit the big rich schools who build swimming pools and theatres but not the smaller less rich schools whose main cost is teachers salaries.

another Labour MP yesterday on the radio called the fact that there is no VAT on school fees a tax deductible …, what ? They also keep conflating charitable status and VAT rather than understanding that it’s the nature of the supply not the supplier which determines VAT status , hence the whole Jaffa cake scenario.

I will still vote Labour but Keir really needs to get them some training on the basics . Frankly the media don’t understand it either but sooner or later someone will start grilling them .

AgathaCrispee · 31/01/2024 12:32

Cvoight · 31/01/2024 12:24

I thought that it might be linked to Labours stance on woman’s rights.

Am I right that as a union member, and with your voting history, you would consider yourself left wing? I’m guessing that Labours position on self-Id is therefore much more upsetting to you than if you’d always identified with right wing parties.

That's probably a whole other thread!

I do think if you support a party you need to hold their feet to the fire to be specific in what they are advocating and point out weaknesses or inconsistencies.

We shrug our shoulders and lull ourselves back to sleep politically by saying 'of course they won't do that', when sometimes they create that very situation inadvertently by hedging their bets.

This could be a huge own goal if they are not clear in what they are doing.

OP posts:
twistyizzy · 31/01/2024 12:30

LongTimeListener1 · 31/01/2024 12:26

Well yeah, one’s a policy position and the other is a piece of legislation that goes through multiple readings.

The issue is that trust is lost about their capability.
As a lifelong Labour voter I won't be voting Labour. Not just on this issue but it highlights that they are more interested in the populist vote and perpetuating UsVThem than they are about sensible, well thought out policies. It isn't the Labour that I believe in.

Another76543 · 31/01/2024 12:30

LongTimeListener1 · 31/01/2024 12:26

Well yeah, one’s a policy position and the other is a piece of legislation that goes through multiple readings.

Precisely. The current plan is still a policy position. It’s not unreasonable to question whether a policy position is workable, especially when it seems to be one of the only policies as things stand.

SchoolQuestionnaire · 31/01/2024 12:29

LongTimeListener1 · 31/01/2024 12:11

Honestly the idea that it might happen my accident is even more ridiculous. Look, I think politicians are useless at the best of times, but the notion that they’re going to introduce another £3bn of tax because they didn’t read the small print is preposterous.

I wish I could give them the same credit but the entire ‘We’ll just remove the charitable status of private schools’ climbdown hasn’t filled me with confidence. It’s also not that long ago that politicians were following around a bus emblazoned with slogans about the oodles of money that would be available to spend on the NHS after Brexit.

This is another headline grabbing vote winner, nothing more. There is no policy or precedent behind this and private schools will undoubtedly fight back. They need to have covered all bases and it’s blatantly obvious that as yet that hasn’t been done.

LongTimeListener1 · 31/01/2024 12:26

twistyizzy · 31/01/2024 12:19

Well they didn't read the small print before declaring that they would remove charitable status did they?
That's why people are querying it because they seem to announce flagship policies without any prior due diligence. That's why people are sceptical. It is embarrassing when you remember that Starmer is a lawyer.

Well yeah, one’s a policy position and the other is a piece of legislation that goes through multiple readings.

Cvoight · 31/01/2024 12:24

AgathaCrispee · 31/01/2024 12:18

No, I have never voted Conservative.

I'm a floating voter between Green and Labour.

I don't trust Labour anymore sadly, even though I'm an active member of a union.

When they let us down badly on supporting women's rights I've started to question everything they're putting out. They need to be specific and clear on what they are saying, or we'll end up in a deeper mess.

I thought that it might be linked to Labours stance on woman’s rights.

Am I right that as a union member, and with your voting history, you would consider yourself left wing? I’m guessing that Labours position on self-Id is therefore much more upsetting to you than if you’d always identified with right wing parties.

Another76543 · 31/01/2024 12:21

LongTimeListener1 · 31/01/2024 12:15

I mean it’s pretty unreasonable, but obviously people are free to say what they like on the internet free from the burdens of having to be sensible.

I’m sure Bridget and Co all wish they hadn’t gone down the charitable status track from an optics perspective, but they are basically achieving their goal regardless.

The Labour Party (and media) suggested that removing charitable status would lead to VAT being payable. They went on and on about it. That was factually incorrect. It’s not unreasonable to question whether or not the latest plan is also based on inaccuracies, or whether it will lead to consequences they haven’t thought about. Why are people so sure that this latest plan will achieve what they want it to, when the previous plans were proved unworkable? Why are people so sure that it’s different this time; that this plan is bullet proof, when the other two plans were a shambolic mess?

twistyizzy · 31/01/2024 12:21

TheMadnessOfOfsted · 31/01/2024 12:18

Forgive my jumping in, but I can answer that question just by reading the thread.

Op already said she's a floating voter, so she doesn't consider herself a Conservative supporter and her political preferences have obviously changed over her lifetime.

Actually no, you can't answer on behalf of another poster. Precisely because you have a pre-conceived notion that they must be Tory. You realise many Labour voters don't agree with the policy either?