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Original poster

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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Original poster
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?

If VAT is added on Private School Fees, then it will be added onto University fees as well
OP posts:
SmashedPrawnsInAMilkyBasket · 31/01/2024 08:17

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.

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.

SmashedPrawnsInAMilkyBasket · 31/01/2024 08:14

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 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.

twistyizzy · 31/01/2024 08:14

Tatumm · 31/01/2024 08:13

Because it won’t happen. The UK needs well trained graduates, particularly medical staff.

But that can happen through Apprenticeships rather than being a full time Uni student

Tatumm · 31/01/2024 08:13

Because it won’t happen. The UK needs well trained graduates, particularly medical staff.

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.

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.

shewasrooting · 31/01/2024 08:12

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

because

its a little story you’ve made up OP

Queenonfleek · 31/01/2024 08:11

no one asking question as it’s not a stated policy and so you are just making stuff up as I imagine you don’t agree with taking charitable status away from private schools and are goading people into supporting you .. pathetic

DinnaeFashYersel · 31/01/2024 08:10

No it won't.

Private schools are a perk for the privileged.

Not remotely the same as universities

notknowledgeable · 31/01/2024 08:10

The two are totally unrelated, university fees wont be affected in the slightest

JaniceBattersby · 31/01/2024 08:08

This is simply not true. HTH.

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.

shewasrooting · 31/01/2024 08:06

what’s your source?