VAT on school fees not applied retroactively- ultra wealthy are safe

Whoop-Dee do. I was also head student - state school, worked hard for good exams, scholarship to Uni, from a poor background, zero advantages other than parents who loved me and valued education.
Am in highest tax bracket now, so is DP.

sounds like you tried to piss some of your private school advantages up the wall.
Somwhat? Plenty of kids, private and state do.private schools are full of not very bright kids whose parents are buying privilege to compensate. others would do well anywhere.

But as you are a high earner at least you can pay the VAT no problems.

This was always on the cards. Right from the start it’s been obvious that elite schools, divested of any necessity to retain their charitable functions will be able to significantly benefit from the ability to turn themselves into businesses.

How exactly does that work? Young mothers with cancer dying and leaving behind small children because they can't afford healthcare. I do not want to live in a country like the US thanks.

The very rich private schools will be fine

https://www.thetimes.com/uk/education/article/elite-schools-set-to-become-even-wealthier-under-new-vat-rules-bjbf9vfbg

You don’t sound pleasant and also if private is no better than state let people pay without driving some out with VAT

You sound delightful, I hope your cousin isn't on Mumsnet.

I went to private school between the ages of 4-18. I benefited hugely from the experience. I was head girl, got poor exam results and elected not to go to university. I now earn a six figure salary, as does my husband, and both my children are privately educated.

So what.

And by the way - my kids are bright and yet I want them to learn in small class sizes with minimal disruption and I am willing to pay for that privilege. And to contribute to those who need to use the state offering via income and other taxes and via VAT if the presiding government sees fit

He hopefully enjoyed his school years. Who says his parents sent him to private school to 'unthick' him?

I just can’t feel sorry for anyone caught up in this debacle. Just because your kid goes to private school it doesn’t automatically mean they’re going to do well. My cousin had a really expensive education and he’s a dog walker, following being unemployed for ages. He got about two GCSEs. He’s just thick 🤷‍♀️ If you’ve got the brains, you don’t need private school.

Given how corrupt so many police seem to be, Can I opt out of paying for them? I also didn’t support the last war - Blair was a liar- can I have a refund for my cut of tax that paid towards that?
Oh, and our refuse people went on strike for weeks - I had to take our rubbish to the tip for that whole time, and I took the elderly neighbours, and the woman across the way who’d just had twins. Can I get my tax back from that, and maybe some of theirs?

I’m also paying onto a tax system for a pension that I may not see very much of, it’ll be 70 by then time I retire… can I please have a rebate of a few years since I’m not an older generation who got to retire in their early 60s?

Do you get it????

@Corvidmango yes, let's scrap the police too whilst we're at it. Let anarchy reign. And when these rich people get their houses robbed I'm sure they will have thought of a way to handle it all by themselves(!)

And when you need an ambulance? You can’t opt out of state structure and taxes and still expect to reap the benefits of civilised society.

you crack on. Use every legal endeavour- as if you aren’t already.
Wealthy people are very good at being ‘tax efficient’ - it’s one of the many pros of having lots of money. The ability to use every loophole and actually having enough spare cash to think about saving it somewhere.
Most normal earners spend their money on, well, living - rent, mortgage, food, fuel, day to day stuff…that’s why they’re so good for the economy.

Let's hope that your dc's school is working hard to give them a social conscience then.

The constant endeavours of some people on this thread and elsewhere to victimise a group of people who are not victims knows no bounds.

The ultra wealthy are more than safe, they will benefit significantly from this policy.
Many will have been v.well aware of the VAT coming in & will have pre-paid before election day, just incase Labour went for them on Day 1 as stated by Angela Rayner & paying the invoice before the election, as long as it's not an escrow account in their name, that gets billed, it is pretty bullet proof in VAT law. As it is Rachel Reeves has said the date will be 29th July & and that people have been given ample time to plan - and the ultra wealthy have certainly done so
These ultra wealthy have been paying school fees in advance for a long time although the incentive of e.g. a 2% saving pa didn't seem that enticing but this is much more enticing for them.

The estimates for these schemes fees paid in advance are generally about 5% rise pa, so for example year 1 fees 25k, = year 2 fees 26,250 = year 3 = 27,562 = year 4 fees 28,940, = year 5 fees 30,387 = 138k to pay for 5 years upfront
If the school now charges VAT, & does not want to pass on full amount in order not to lose those pupils who don't pay upfront, it makes savings (cuts bursaries etc) & reclaims input VAT (huge windfall for some schools - we could be talking multiple millions) to only pass on 10%, i.e. 25k fee goes up to 27.5k fee incl VAT then the net amount that was previously estimated to rise by 5% will now start with a fall of 10% (then maybe rise by 5% thereafter depending on the windfall from input VAT reclaims) For those who paid upfront Year 1 22 500 = year 2 £23,625 = year 3 24,806 = year 4 26,046 = year 5 27,348 = total paid of £126.8k and a reimbursement of £138k - £ 126.8k = 12k ....kerching for the ultra wealthy but the real losers will be those who no longer receive bursaries, smaller independents who dont have the ultra wealthy attending, those parents just about affording & those significantly disrupted e.g. the 100k kids with SEN

It includes most BAME people. Additionally Indian, African & Chinese kids who go to private are often the kids of nurses, teachers and carers on burseries who choose private INSTEAD of buying or renting a house. This policy will impact them the most as State schools in many areas are just gang or murder factors for kids who aren’t white.

Ok, so? Sounds like those families may actually benefit then, from not having to pay fees.

Wow, imagine having to pay school fees from salaries(!)

So what?

This is so true

The kids leaving private school will be the kids whose parents were poor themselves growing up and have to pay fees via salaries. The ones who grew up with a legacy of private school will have grandparents or trusts to fall back on