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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!!

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Dibblydoodahdah · 31/01/2024 08:45

ilovesooty · 31/01/2024 08:38

Exactly.

No it’s not! Please do some research. VAT and charitable status are two different things. Labour have dropped the policy regarding ending charitable status.

L1ttledrummergirl · 31/01/2024 08:44

Given that care homes pay VAT on some staff (domestics, cooks, carers) but not nurses, I see no reason why private schools are still VAT exempt. I will wait for the election to be called and manifestos published, before making spurious claims about candidates intentions.

Yabvu

Dibblydoodahdah · 31/01/2024 08:43

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.

You have no idea what you are talking about. VAT exemption and charity status are two completely different things. Some private schools are charities, others are not. All are currently exempt from VAT. Labour have dropped their policy regarding ending charitable status.

ButWhatAboutTheBees · 31/01/2024 08:41

Most people don't actually pay their uni fees though...

People who "can't afford it" can't afford the accommodation and books etc because parents are expect to pay some support

Now if they said they were going to change the student finance system you could be more worried

Dibblydoodahdah · 31/01/2024 08:40

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.

VAT exemption has nothing to do with private schools being charities. Some are charities, some are not. All are exempted from VAT. Labour did also have a policy of ending the charity status but they dropped it because it would have been too difficult to implement.

ilovesooty · 31/01/2024 08:38

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.

Exactly.

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.

DinnaeFashYersel · 31/01/2024 08:33

You are barking up the wrong tree.

Vermin · 31/01/2024 08:33

@Lindaofoxford charotable status is irrelevant to VAT. Charities pay VAT for goods and services they buy which are VaT rated

MN HQ should do a VAT masterclass / q@a so people understand this. Or people could read up on it…

TheLostOnes · 31/01/2024 08:30

TuxedoCatsRule · 31/01/2024 08:23

Don’t know why @AgathaCrispee getting such a pile on from some quarters.

All private schools are working on the assumption that they will no longer be exempt from VAT in the likely event of a Labour Govt and that they should prepare for this fairly soon in that new parliament.

a technical question about how applying VAT to one provider of educational services but not others will work in practice is hardly a goady post, it’s a legitimate query about how a big picture manifesto policy would work in detail.

Maybe I've been harsh. In the context of the ridiculous amounts of threads about this issues in recent days I am a bit sceptical of naive 'hasn't anyone thought of this...' posts (about policies that don't exist) when this is covered loads in all those other threads. It feels like MN is full of panicking parents of private school kids at the moment in full on attack mode. It's tiresome.

Deathbyathousandcats · 31/01/2024 08:29

I'm a floating voter myself, but this is something we need an answer to

of course you are. Christ, the Tories are getting desperate.

AgathaCrispee · 31/01/2024 08:29

I'll say it again:

Labout are not going after the charitable status anymore, thats misinformation. It would be difficult legally. So they're going to remove VAT exemption. This means that all educational institutions could be at risk.

My children are at state school and I'm worried about what this means if they go to university.

Do some reading, it's all out there in the public domain of what the plan is.

It's really concerning for all parents.

We need clear and concise statements from Labour as to the boundaries of this proposal.

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TheLostOnes · 31/01/2024 08:26

AgathaCrispee · 31/01/2024 08:20

It's not scaremongering to ask questions.

We should all be asking questions of the people we want to govern us.

I'm a floating voter myself, but this is something we need an answer to.

Edited

Well, if it's not in labour's manifesto then you will have your answer that they're not planning on doing this. I hope you're planning on starting lots of threads with questions for the tories. I mean they have been in power and fucking the country up for ages so your questions to them can be about stuff that they've actually done rather than on imaginary policies that they haven't said they will have.

TuxedoCatsRule · 31/01/2024 08:26

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.

Erm yes they do. UK Universities have exempt charitable status

twistyizzy · 31/01/2024 08:25

Londonrach1 · 31/01/2024 08:23

Totally different things. Private schools shouldn't have charity status as they not charities.

Labour have dropped the removal of charity status. It is too hard so they have abandoned that.

So many supporters of VAT are woefully ignorant ot Labour dropping the charitable status removal and can't seem to distinguish between that and the VAT policy. They are 2 separate things.

notknowledgeable · 31/01/2024 08:24

AgathaCrispee · 31/01/2024 08:17

If you remove the charitable status, the underlying service provided by private schools is education.

As per the UoS quote, educational services are currently exempt from VAT.

Some private schools don't have charitable status and are still exempt from VAT because of this rule.

Labour are looking at circumventing the charity issue:

'Labour’s initial plan was to remove the charitable status of private schools as a way of removing the tax breaks. They have now decided that it will be easier, quicker and less at risk from a legal challenge, to change the tax status without removing the charitable status. They are proposing to make private school fees subject to VAT at the standard rate of 20% as well as removing a discount that private schools currently receive on business rates. These changes could be made as part of a budget or separately.'

https://www.schoolguide.co.uk/blog/vat-on-school-fees-everything-parents-need-to-know#:~:text=Private%20schools%20that%20don%27t,of%20removing%20the%20tax%20breaks.

If Labour go after the educational exemption, then this could be applied to all institutions that provide educational and vocational training, including Universities.

Why is no one talking about this?

Why is nobody talking about it? Because it is a completely invented non issue

IrritatingIrritant · 31/01/2024 08:24

University fees will definitely rise over the next decade. Not because of VAT, but because governments do not want to invest in any education in this country. Universities are struggling financially anyway. The only way they can survive is to charge the students more.

I think rises will happen gradually every few years by a few thousand until it becomes unattainable for many.

Londonrach1 · 31/01/2024 08:23

Totally different things. Private schools shouldn't have charity status as they not charities.

TuxedoCatsRule · 31/01/2024 08:23

Don’t know why @AgathaCrispee getting such a pile on from some quarters.

All private schools are working on the assumption that they will no longer be exempt from VAT in the likely event of a Labour Govt and that they should prepare for this fairly soon in that new parliament.

a technical question about how applying VAT to one provider of educational services but not others will work in practice is hardly a goady post, it’s a legitimate query about how a big picture manifesto policy would work in detail.

Vermin · 31/01/2024 08:22

To remove charitable status is not legally feasible and would take longer than the first term of office, and would affect large numbers of charities because of the way the legislation is drafted. That’s why that approach was dropped. VAT is a separate issue - all charities pay/ charge VAT on goods and services which they consume or supply and which are vat rated.

VAT is chargeable on a class of goods / services. Education services covers way more than private school fees so will affect a lot more people than starmer’s soundbite suggests. And it still won’t raise a fraction of the cash that adjusting eg non dom / corporation tax off shoring regimes would. It hits the wrong people for a small amount of benefit but ignites a good argument, based on “if I can’t have it nor can they”. Local authorities who use private education services for special needs pupils will be paying it (but will claim back as througput). People who use tutors will be paying it. Language schools will charge it - another barrier to successful immigrant integration. There are so many more impacts of this lousy policy but fuck the rich, eh?

AgathaCrispee · 31/01/2024 08:21

Not all private schools have charitable status, see my previous post. So it's not apples and oranges.

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AgathaCrispee · 31/01/2024 08:20

It's not scaremongering to ask questions.

We should all be asking questions of the people we want to govern us.

I'm a floating voter myself, but this is something we need an answer to.

OP posts:
KombuchaKalling · 31/01/2024 08:20

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.

Err this. Totally different things

TheLostOnes · 31/01/2024 08:18

Huge amount of threads about vat on school fees on mumsnet over the last few days. Some people are clearly getting nervous. And the election hasn't even been called yet, it's going to be a long year.

No, I'm not worried. If it becomes policy of one of the parties then we can talk about it. Until then you're just scaremongering.

twistyizzy · 31/01/2024 08:18

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.

Labour aren't getting rid of charitable status though are they!