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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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ElaineMBenes · 31/01/2024 09:31

The End Point Assessment Organisation.

Then you need them to be completely overhauled as the end point assessor currently has to be independent from the awarding institution.

Many organisations completing the end point assessment are not in a position to validate degree programmes.

Waverleyst · 31/01/2024 09:30

I didn’t realise this. Thank you.

Mytopia · 31/01/2024 09:30

Just pay the VAT and stop scare mongering. They won't put VAT on university fees, it is only private school fees impacted.

Waverleyst · 31/01/2024 09:29

This is interesting. What makes a business BAT exempt? I’m not being facetious. I’m genuinely interested.

ElaineMBenes · 31/01/2024 09:29

The cost to the uni is minimal

Not true. The cost of running an apprenticeship at a university is not minimal.
It's a lots of additional work and bureaucracy compared to a standard degree and can be resource heavy.

twistyizzy · 31/01/2024 09:29

ElaineMBenes · 31/01/2024 09:27

Actually they don't need universities. An ITP could deliver up to Level 7 which is an undergraduate degree. It already happens in other sectors. So you could cut out university completely and still get a degree.

Who would validate the degree?
Level 7 is a postgraduate qualification.....

The End Point Assessment Organisation. Sorry yes L7 is post grad!

Waverleyst · 31/01/2024 09:27

@PremiumRaa. you said it. Able to pay for them. If this isn’t a perk of the privileged, what it it? I’m intrigued to know.

ElaineMBenes · 31/01/2024 09:27

Actually they don't need universities. An ITP could deliver up to Level 7 which is an undergraduate degree. It already happens in other sectors. So you could cut out university completely and still get a degree.

Who would validate the degree?
Level 7 is a postgraduate qualification.....

Another76543 · 31/01/2024 09:25

SmashedPrawnsInAMilkyBasket · 31/01/2024 08:17

Private schools should not be classed as charities. It’s a nonsense. If the removal of charitable status means that VAT falls due on their fees, so be it. None of the other things you mention in this post are related to this one proposal.

Private schools should not be classed as charities.

Around half of them don’t have charitable status. The Labour Party have already said they are not going to strip those that do of their charitable status.

They are planning to change the VAT legislation, the same legislation which covers universities.

twistyizzy · 31/01/2024 09:24

coffeeaddict77 · 31/01/2024 09:20

It doesn't matter whether they go full time or part time. Without universities degree apprenticeships would not exist.

Actually they don't need universities. An ITP could deliver up to Level 7 which is an undergraduate degree. It already happens in other sectors. So you could cut out university completely and still get a degree.

Another76543 · 31/01/2024 09:23

SmashedPrawnsInAMilkyBasket · 31/01/2024 08:14

This is the answer. The proposal is to remove the spurious charitable status of private schools, a byproduct of which is that they will lose the exemption from VAT. It’s not a proposal to add VAT, but the removal of the exemption, an exemption which doesn’t apply to universities, so there is no correlation between their situations.

The proposal is to remove the spurious charitable status of private schools

This is incorrect. The Labour Party has already said they’ve backed down on plans to strip schools of charitable status.

The plan is to change the VAT legislation. That legislation exempts private schools. The same part of the legislation also exempts universities.

Lindaofoxford · 31/01/2024 09:21

@coffeeaddict77. The employer pays the uni fees and the student, so no debt. In many cases, uni contact is one day a week max and done remotely. The cost to the uni is minimal and to the student.

My son’s friend has a guaranteed job on completion and not dependent on grade. He’s been able to demonstrate his fit for the business and work ethic.

He’s not a first class honours student. However, he has been able to demonstrate he is a first class honours employee.

This said, it was the privilege of his private education that ensured he had the extra curricular that secured him his degree apprenticeship in the first place. Without this, he would be in a huge pool of potentially 2:2 students, seeking out the same jobs while saddled with huge debt.

Privilege still goes to privilege and I’m acutely aware of this. I don’t feel guilty, because my financial circumstances are what they are and with just one child, it stretches further, but I am fully aware that my son has huge advantages over children who are naturally more academic and work harder, but have had no leg ups.

coffeeaddict77 · 31/01/2024 09:20

twistyizzy · 31/01/2024 09:08

But DA don't involve FT university attendance and are often delivered remotely. So yes it would be possible to VAT full time resident Uni courses.
Sorry I just don't trust any party not to back track etc.

It doesn't matter whether they go full time or part time. Without universities degree apprenticeships would not exist.

Another76543 · 31/01/2024 09:20

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.

Yet another thread where people have to explain the facts.

Private schools are exempt from VAT under the VAT legislation. It’s in the same part of the legislation that universities fall under and mean they are also exempt.

The charitable status is entirely separate. Around half of private schools are not charities now and are not liable to VAT.

HavfrueDenizKisi · 31/01/2024 09:15

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.

This just goes to show how little people understand. Confused

VAT cannot currently be charged on education provision by eligible bodies.

Charitable status is a completely different issue here. It has nothing to do with VAT. But it goes to show how little people can read/understand and how easy it is for politicians to play emotive cards and manipulate the electorate.

To answer the question OP I'm fairly sure any changes, if thought through carefully (and that never happens unfortunately) will remove exemption from only certain providers so uni fees will be vat free still.

AgathaCrispee · 31/01/2024 09:15

Deathbyathousandcats · 31/01/2024 09:10

I also name changed as I knew I'd get static but all these threads about school fees have got me thinking about wider consequences.

of course you did.

It really doesn't matter whether you believe me or not, it's still something that needs to be talked about.

OP posts:
Lindaofoxford · 31/01/2024 09:12

They are. My son went to private school because I had the financial means. He would otherwise have gone to a perfectly good state school. I paid for him to benefit from smaller class sizes and access to more sport, drama and extra curricular. He is dyslexic and thrived better in this environment because it better met his needs. This was a perk of his privilege. As a result, he will thrive better and possibly be more happy and successful as an adult than otherwise.

Deathbyathousandcats · 31/01/2024 09:10

I also name changed as I knew I'd get static but all these threads about school fees have got me thinking about wider consequences.

of course you did.

AgathaCrispee · 31/01/2024 09:09

Aaaalrightythen · 31/01/2024 08:36

Wow to the "if it's not in their manifesto" rubbish; look at what we've had in the last decade and tell me you still believe that!? You think Labour will stick to pledges when they only have this as a vote winner and are relying on the fact everyone is just so sick of the Tories they'll get in? It's like we've learnt nothing from the false promises of Brexit, again.

I'm happy to suck up on private school fees but the university costs increase worry me. DC are looking at potentially 7yrs of further education each. I can't see how more people aren't worried.

I suspect this may well be a question asked in the House of Lords.

If you remove the educational exemption for one, how does it differ from tertiary education which is also an educational institution.

If university fees are £9250 for 2024/25, then in theory this could be £11,100 for 2025/26.

A jump from £27,750 to £33,300.

If we factor in accommodation and food/living at £15000/year, so £45,000 in total.

We're looking at £78,300 in debt when you leave university. I'm guessing a lot of this won't ever be paid back as it will be student loan, but its a heck of a millstone.

I'm ignoring the accusations of being a Tory campaigner. I'd ask the same question of any party putting this forward. It's the impact of unintended consequences that worries me.

I also name changed as I knew I'd get static but all these threads about school fees have got me thinking about wider consequences.

OP posts:
Validus · 31/01/2024 09:08

DinnaeFashYersel · 31/01/2024 08:10

No it won't.

Private schools are a perk for the privileged.

Not remotely the same as universities

University is a privilege. Not a right. And both are paid for privately.

twistyizzy · 31/01/2024 09:08

coffeeaddict77 · 31/01/2024 09:06

University is essential for many jobs. Degree apprenticeships still involve going to universities.

But DA don't involve FT university attendance and are often delivered remotely. So yes it would be possible to VAT full time resident Uni courses.
Sorry I just don't trust any party not to back track etc.

DibbleDooDah · 31/01/2024 09:07

UK universities are private institutions which are funded, in part, by the government. They do not receive funding for international students so those young people are receiving a private education in the U.K.

There has never been an instance where VAT has only been charged to non resident individuals and it would cause a LOT of problems.

There are also private schools that fit the needs of those with additional needs, many of whom attend have their fees paid for by their LA. What about military families who have no real option than to send their children to boarding school?

Then add in vocational schools, tutoring, sports, dance, art lessons etc.

I think it is going to be extremely hard to clearly define what constitutes private education and what doesn’t. The arguments justifying what’s in and out of the scope of VAT will take ages to iron out.

So whilst I don’t think VAT will be added to university fees, private schools will challenge the rationale. University is not an essential service open to all or required by law. Arguably a “luxury” item too?

Aaaalrightythen · 31/01/2024 09:06

Lindaofoxford · 31/01/2024 09:00

Uni is already out of the reach of many families. Fees alone are circa £9250. Add 9% pa interest on loan, this is £10,082.50. Rents are about the same. 2nd and 3rd years can be more dependent on local rents.

Once a family earning over £25000, maintenance loans are given on ever decreasing scale. £25000 is below average wage.

So, 3 x fees and maintenance in real terms is 3 x circa £20k per year so £60k. Obvs some live at home. Some do 4 years. £60000 x 1 year at 9% = £65400 and on it grows.

If YP drops out or is kicked out at any point in the year, the fees and rent for the year still apply.

Loan is deducted from earning at 1% once salary is £25000. So £20 pm paid off on an every growing debt, currently at 9%. Doesn’t sound a lot, but tax, NI, rent, fares, saving for mortgage…. Your YP forever chasing their debt.

It’s now 40 not 30 years before written off. YP will be 60+ by then and their own children finished uni with own debt. Many YP will only ever earn around average Uk salary, depending on their profession. This includes most vocations.

Taking time out to have children, travel, do further travel, manage sudden illness and 🤷‍♀️.

Degree apprenticeships are becoming increasingly competitive for this reason. However, the greater the privilege, the more chance of securing a DA. It’s simply the law of the jungle.

No degree, limited career opportunities. And on it goes.

For equality, we need employers to remove the degree prerequisite for even an interview for all but vocations that require specific teaching.

My son is doing a business related degree at sn RG. It’s so out of date. The course curator has clearly never worked in industry. For example, it positions HR as a friend of the employee. It’s not. HR works for the business. If he is to go into HR, he will have to learn the actual practice of HR on the job, so what’s the point of uni other than a big jolly?

A levels and Btecs are enough to demonstrate commitment to learning.

To conclude, university education is already beyond the means of many families. For others, it is a life long debt burden. We need to all look outside of our ivory towers when making self driven posts on forums such as this.

The debt is much harder on girls too, as you say, taking time out for kids and their pensions suffering more than men's as they don't earn as much. The system is already broken and unfair.

I just want Labour to look ahead and have more than 1 policy that has little earning potential. Maybe saying all medical related degrees from Nursing to Neuroscience (if going on to work in NHS for minimum of 5yrs) would be subsidised by the govt? Anything longer term that might actually give everyone an idea of direction.

coffeeaddict77 · 31/01/2024 09:06

twistyizzy · 31/01/2024 08:13

It is already becoming unaffordable for some families with the cost of accommodation etc.
A lot of people will come on here saying "don't be ridiculous" etc but there is simply no way of knowing. VAT on private schools is the thin end of the wedge IMO. Once politicians realise they can get away with adding tax to things and can sell it as "levelling up/equalling the playing field" then yes I think we will see VAT on university, private health care and many other things that can be classed as a luxury. University isn't essential and there are other options eg Apprenticeships so it would be easy to claim that university is a luxury.
So many people are so obsessed with socking it to the rich/elite through VAT on private schools fees without stopping to think of the long term implications.

University is essential for many jobs. Degree apprenticeships still involve going to universities.

Lindaofoxford · 31/01/2024 09:05

What is?