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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:
Thread gallery
18
Kewcumber · 31/01/2024 11:20

EasternStandard · 31/01/2024 09:51

What’s the percentage split on public v private?

I hadn’t given any thought to what is what

There are only 5 private universities that take no public funding - the charitable University of Buckingham and Regent's University London, and the profit-making University of Law, BPP University and Arden University

AgathaCrispee · 31/01/2024 11:17

EasternStandard · 31/01/2024 11:11

There’s about four questions in the op

How precious people are

It's okay, it's just an attempt to shut down a political discussion.

We need to discuss political proposals more not less. If there's clarity provided then there's less concern. At the moment it's just banner headlines on a bus, which concerns me because its not been thought through.

OP posts:
Lindaofoxford · 31/01/2024 11:12

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

EasternStandard · 31/01/2024 11:11

There’s about four questions in the op

How precious people are

Cvoight · 31/01/2024 11:10

EasternStandard · 31/01/2024 11:07

Don’t be silly.

It’s just a question

Read the thread title: If VAT is added on Private School Fees, then it will be added onto University fees as well

Thats not a question, that’s a statement.

A bullshit, shit stirring statement

EasternStandard · 31/01/2024 11:10

Good on you op. People don’t like questions on here Labour might have to clarify 🫨

AgathaCrispee · 31/01/2024 11:09

Mumsnet HQ

Please can you confirm that I am a long term poster who has name changed.

I think we need to put the accusations that I'm a Tory activist to bed.

This is an important discussion that many people are interested in.

I've reported this post as well.

OP posts:
Deathbyathousandcats · 31/01/2024 11:09

Cvoight · 31/01/2024 11:06

And it doesn’t matter that 90% of posters have come on this thread to point out that the OP is spouting nonsense; the seed is now planted.

Classic populist playbook. I’m guessing we’re going to see more of this on MN in the coming months.

Yep.

EasternStandard · 31/01/2024 11:08

Labour could even..

Clarify in a statement

I know it’s not their forte but maybe time to practise

EasternStandard · 31/01/2024 11:07

Cvoight · 31/01/2024 11:06

And it doesn’t matter that 90% of posters have come on this thread to point out that the OP is spouting nonsense; the seed is now planted.

Classic populist playbook. I’m guessing we’re going to see more of this on MN in the coming months.

Don’t be silly.

It’s just a question

AgathaCrispee · 31/01/2024 11:06

LongTimeListener1 · 31/01/2024 10:59

Anyone who thinks Labour is going to slip through a 17% rise in university fees under the auspices of VAT on school fees just doesn’t understand politics very well.

I don't think they will slip any increase through.

I think it will be used as a legal challenge to adding VAT onto private school fees, which will open up scrutiny on University fees and by the law of unintended consequences could make University fees liable for VAT.

OP posts:
Cvoight · 31/01/2024 11:06

And it doesn’t matter that 90% of posters have come on this thread to point out that the OP is spouting nonsense; the seed is now planted.

Classic populist playbook. I’m guessing we’re going to see more of this on MN in the coming months.

Cvoight · 31/01/2024 11:03

LongTimeListener1 · 31/01/2024 10:59

Anyone who thinks Labour is going to slip through a 17% rise in university fees under the auspices of VAT on school fees just doesn’t understand politics very well.

Well yes, exactly.

But the tories are desperate and speculative post-truth bullshit is the only thing left at this point.

LongTimeListener1 · 31/01/2024 10:59

Anyone who thinks Labour is going to slip through a 17% rise in university fees under the auspices of VAT on school fees just doesn’t understand politics very well.

EasternStandard · 31/01/2024 10:59

Cvoight · 31/01/2024 10:55

Interesting first post @AgathaCrispee

Welcome to Mumsnet

I hope to god that you aren’t working for the tories in a paid capacity.

MN - I know you will delete this post pretty darn quick. But please can you also take a look behind the scenes too cause this post is problematic on many levels.

What an overreaction

I’d like to know what the position is

Another76543 · 31/01/2024 10:57

Cvoight · 31/01/2024 10:55

Interesting first post @AgathaCrispee

Welcome to Mumsnet

I hope to god that you aren’t working for the tories in a paid capacity.

MN - I know you will delete this post pretty darn quick. But please can you also take a look behind the scenes too cause this post is problematic on many levels.

I know you will delete this post pretty darn quick.

Why? The possibility has also been mentioned on other threads. It’s a genuine question, given that universities and private schools both fall under the section of legislation which they are planning to change.

Pippa246 · 31/01/2024 10:56

Lindaofoxford · 31/01/2024 08:08

Private schools currently have charitable status and so VAT exempt. Unis don’t. You are comparing apples with pears.

But most Universities DO have charitable status though

https://www.birmingham.ac.uk/legal/charity.aspx
^^
Almost all British universities have charitable status because their primary purposes of advancing education and research are deemed to deliver a public benefit. This means the University can reclaim Gift Aid on donations, increasing their value by 25%, and that corporation tax does not have to be paid on profits made from research with a social impact.
^^
For me though, the difference is private schools only advantage individuals whereas universities benefit the whole of society particularly through research and knowledge transfer.

Our charitable status

https://www.birmingham.ac.uk/legal/charity.aspx

Spendonsend · 31/01/2024 10:56

coffeeaddict77 · 31/01/2024 10:50

They aren't going to make something that is currently funded by the tax payer VATable though. What would be the point? That is the difference between private schools and universities, not who has charitable status.

I agree it makes no sense.

I was just trying to explain its not the charitable status that makes them exempt from VAT. So if Labour get in, when they write the new VAT law, they will write it to cover private schools they wint just say 'vat on education' as universities provide education.

Cvoight · 31/01/2024 10:55

Interesting first post @AgathaCrispee

Welcome to Mumsnet

I hope to god that you aren’t working for the tories in a paid capacity.

MN - I know you will delete this post pretty darn quick. But please can you also take a look behind the scenes too cause this post is problematic on many levels.

coffeeaddict77 · 31/01/2024 10:50

Spendonsend · 31/01/2024 10:42

No. Education currently isnt vatable whoever provides it.

They plan to change the law to make education vatable. Its not clear how this will be written as they want to basically make compulsory age school education vatable who ever delivers it.

The charity thing's a red herring.

They aren't going to make something that is currently funded by the tax payer VATable though. What would be the point? That is the difference between private schools and universities, not who has charitable status.

LongTimeListener1 · 31/01/2024 10:48

coffeeaddict77 · 31/01/2024 10:47

They can't do that unless the government let them. More might go private though.

Yes, government will have to find some way to fund the failing university sector. Most likely by lifting the fee cap.

MyOrganisationIsCaptured · 31/01/2024 10:47

@AgathaCrispee people don't like to dig. They go around making huge assumptions based on FA and then get upset when they are told how unbelievably ignorant they are on the subject. Of course it doesn't make any sense, it's about prejudice and idiocy and the policy will be carried through on the wave of 'most people think' when most people haven't the first clue about economics or charitable status or actually, private education beyond what they assume based on that photo of Boris and David Cameron looking like dicks in that photo from Eton

coffeeaddict77 · 31/01/2024 10:47

LongTimeListener1 · 31/01/2024 10:40

Your worry shouldn’t be about whether they add VAT to university fees (they won’t), your worry should be that universities are chronically underfunded and they’re going to have to find the money from somewhere. Most likely by increasing the fee cap.

They can't do that unless the government let them. More might go private though.

meditrina · 31/01/2024 10:45

In theory, they could because both at present are covered by the EU concept of "no taxation on education"

Once you've decided to remove that concept, then it becomes possible - and for nursey fees too. Indeed there's even a school of thought that it's better applied to age groups outside CSA.

So we have to wait to see exactly how Labour propose to introduce this - it's a "devil in the detail" policy. And does indeed open the gate to changes to taxation on fees for other educational activities that are currently exempt

Spendonsend · 31/01/2024 10:42

AgathaCrispee · 31/01/2024 10:29

Hang on, if some universities and private schools have charitable status then they would still be exempt from VAT given that Labour will not be removing that status.

Therefore, the VAT liability will only fall on those without charitable status? Wouldn't that just make the one with it more popular and over subscribed?

This proposal doesn't make any sense the more you dig into it!

No. Education currently isnt vatable whoever provides it.

They plan to change the law to make education vatable. Its not clear how this will be written as they want to basically make compulsory age school education vatable who ever delivers it.

The charity thing's a red herring.