Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

See all MNHQ comments on this thread

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
Araminta1003 · 02/02/2024 17:00

Thanks @shewasrooting - I forgive you.

shewasrooting · 02/02/2024 06:01

Araminta1003 · 01/02/2024 18:43

@shewasrooting - are you really still going rather than apologising?

And this is why hardly anyone wants to be an MP anymore. Vicious attacks on social media and in real life. 2 MPs dead. Misquoting, mislabelling, cliches, well done @shewasrooting MN Bingo

i am sorry @Araminta1003 it was a stupid error on my part

Tuturkeykey · 02/02/2024 00:25

I’ve read the whole thread, including the never ending misunderstanding over charitable status, and accusations against some specific posters.

I just wanted to dispel a view that some posters have expressed, which is that all parents who send their children to private schools are Tories and will vote against Labour anyway. I can assure you that is very far from the truth. There are loads of Labour supporters among independent schools - in fact I have very few friends who identify as Tories - they are despised by most doctors, teachers, scientists, lawyers, bankers and other middle class people who form the bulk of independent schools communities.

Some parents are very worried by the VAT policy. Some, like us, are not best pleased about it, but we are not going to vote for the effing Tories because of it. That doesn’t mean we approve of the policy, or that it won’t mean a financial burden - it definitely will. Yes we are fortunate that we can afford the increase, but it will definitely have an impact on our budget.

Yes I’m lucky that we can afford the independent sector. But we don’t have a car, we use public transport everywhere. Contrast our neighbours with their Porsches and Landrovers who send their kids to the local state school. Meanwhile we pay our taxes and subsidise the state education sector even though we couldn’t use it (we were not offered any local state school for our children so had to turn to private schools because of school place shortages in the baby boom years). Why are we being singled out for an increased contribution, when other people who earn substantially more are not?

Some posters on this thread have a very black and white, us vs them view of the world. Whereas the reality is vastly more complex. I’m not asking for a shoulder to cry on, but please don’t think that all parents who choose private schools are arsehole Tories.

Snugglemonkey · 01/02/2024 20:33

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?

Because of people being driven by jealousy, because people are short sighted, because people believed the shite on the bus about the NHS. So they will believe any old shite that chimes with their set of misguided beliefs.

Snugglemonkey · 01/02/2024 20:29

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.

There is no proposal to remove charity status.

Snugglemonkey · 01/02/2024 20:28

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.

No, it is not. Labour have confirmed they will not be seeking to remove charitable status. All they are seeking to do is change the law so that Vat can be charged on education. This can go many ways, and it is not unfathomable that university education could end up affected. But it is absolutely not about removal of charity status.

coffeeaddict77 · 01/02/2024 20:11

shewasrooting · 01/02/2024 18:37

no way! the army wasn’t paying for private boarding school fees for NCO!

2007 for example The Ministry of Defence paid out £100m last year to subsidise fee-paying boarding school education for the sons and daughters of military officers and some senior NCOs, The Herald can reveal.

but you’re saying 20 years previously they were?

in any event PP describes herself as coming from a high ranking military family

I think there are state boarding schools now where the education is free and parents just pay for the board which I think will be covered by the ministry of defence.

cyclamenqueen · 01/02/2024 18:46

@shewasrooting

Hansard 1980

If VAT is added on Private School Fees, then it will be added onto University fees as well
Araminta1003 · 01/02/2024 18:43

@shewasrooting - are you really still going rather than apologising?

And this is why hardly anyone wants to be an MP anymore. Vicious attacks on social media and in real life. 2 MPs dead. Misquoting, mislabelling, cliches, well done @shewasrooting MN Bingo

EasternStandard · 01/02/2024 18:43

Dibblydoodahdah · 01/02/2024 18:43

Yes, the whole post was a quote. You’ve got the wrong end of the stick and need to apologise to the poster.

@shewasrooting I agree with this, a sorry for getting it wrong could do

Dibblydoodahdah · 01/02/2024 18:43

shewasrooting · 01/02/2024 18:33

what that working class and not privileged?

Yes, the whole post was a quote. You’ve got the wrong end of the stick and need to apologise to the poster.

cyclamenqueen · 01/02/2024 18:42

That’s Eton , Harrow , Uppingham , etc. This policy really makes not a jot of difference to them. People who pay for boarding will still pay and the schools will mitigate by recovering VAT on capex and introducing differential fees for overseas pupils

As previously discussed the ones who are worried are your local independent possibly ex Grammar day school who don’t have a big capital project every year and whose pupil base is much more sensitive to price . For most of these schools roughly 70% to 80% of their input costs are teachers and support staff salaries , no VAT to recover there or other costs like food also no VAT. Some of these schools are on very tight margins and I suspect t some especially at primary level and those that take a lot of children with SEN will fold./merge.

shewasrooting · 01/02/2024 18:37

cyclamenqueen · 01/02/2024 18:30

The army allowance pays for both commissioned and non commissioned . Plenty of NCOs children at my girls boarding school in the 1980s

no way! the army wasn’t paying for private boarding school fees for NCO!

2007 for example The Ministry of Defence paid out £100m last year to subsidise fee-paying boarding school education for the sons and daughters of military officers and some senior NCOs, The Herald can reveal.

but you’re saying 20 years previously they were?

in any event PP describes herself as coming from a high ranking military family

shewasrooting · 01/02/2024 18:33

EasternStandard · 01/02/2024 18:16

@shewasrooting the post you’ve copied from another thread is a quote from Diane Young

what that working class and not privileged?

coffeeaddict77 · 01/02/2024 18:31

cyclamenqueen · 01/02/2024 18:26

Private schools pay VAT , and for those who have big capital projects they pay shedloads of it. If Labours policy goes through as it stands they will now be able to reclaim that VAT. At the moment they cannot.

Academies and LEA schools reclaim their VAT either under s126 or s33 .

there is a specific issue with sixth form colleges which is current going through the courts.

Well if they are going to be so much better off if the labour policy goes through why are they worried?

indigovapour · 01/02/2024 18:31

Londonrach1 · 31/01/2024 08:23

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

Charitable status of private schools isn't being changed - Labour dropped that part of their proposal.

In answer to OP I would expect a challenge to add VAT to university fees as well, yes, but it won't come from the government. I think it's one way interested parties will try to undermine and wreck the proposed VAT changes.

cyclamenqueen · 01/02/2024 18:30

shewasrooting · 01/02/2024 17:13

both parents in the military

and the army paid for private schooling?

they would have been officers. Working class? 🤔

The army allowance pays for both commissioned and non commissioned . Plenty of NCOs children at my girls boarding school in the 1980s

cyclamenqueen · 01/02/2024 18:26

Paellaaaa · 01/02/2024 17:00

I seriously don’t think you need to feel
sorry for anybody earning £75k.

I’m staggered state six form colleges are paying VAT whilst private schools haven’t been. State kids are already disadvantaged in the UCAS process. The fact kids in big six form colleges have also had money taken away from their education that would help with UCAS, equipment and teachers whilst private schools have been exempt is just beyond belief.

Private schools pay VAT , and for those who have big capital projects they pay shedloads of it. If Labours policy goes through as it stands they will now be able to reclaim that VAT. At the moment they cannot.

Academies and LEA schools reclaim their VAT either under s126 or s33 .

there is a specific issue with sixth form colleges which is current going through the courts.

TheLostOnes · 01/02/2024 18:19

shewasrooting · 01/02/2024 18:12

@Thesmokinggnu

epic hypocrisy on the part of @Araminta1003 is what i have “evidenced” from this thread

You have got the wrong end of the stick with this. Very beginning of post is opening quotation mark. Scroll all the way down to above link - closing quotation mark. I probably wouldn't choose to post a huge quote like that but Araminta isn't talking about herself there.

EasternStandard · 01/02/2024 18:16

shewasrooting · 01/02/2024 18:12

@Thesmokinggnu

epic hypocrisy on the part of @Araminta1003 is what i have “evidenced” from this thread

@shewasrooting the post you’ve copied from another thread is a quote from Diane Young

Thesmokinggnu · 01/02/2024 18:15

She was rooting - Good for you - always useful to drop into personal attacks.

let’s start with Starmer going to fee paying school and pulling the ladder up behind him.

shewasrooting · 01/02/2024 18:12

@Thesmokinggnu

epic hypocrisy on the part of @Araminta1003 is what i have “evidenced” from this thread

Thesmokinggnu · 01/02/2024 18:09

So what we have evidenced here on this thread is this is the politics of division.

Remembering that elections in the UK are not proportional representation, elections are not won by playing to your core vote. Labour have a real opportunity to unite lots of moderate liberal middle class voters.

However, they will definitely lose votes from this, possibly in marginal Tory seats they hope to win. This could be a massive own goal.

shewasrooting · 01/02/2024 18:07

two questions @Araminta1003

So you privately educate your children as you explicitly state on the thread?

Do you come from a “working class background” despite saying your background is in high ranking military and indeed your parents were posted abroad and you boarded in a private school?

shewasrooting · 01/02/2024 18:05

@Araminta1003

You are misquoting to discredit my questions. Cheap shot. Hot air.

example? i am literally copying and pasting!