To ask if anyone is clued up on the challenge this week to VAT on school fees?

‘
you absolutely must factor in vat to your calculations PLUS annual fee increases of at least a few percent every yeaR’

Friends school has increased her fees by 8/9% a year… and there is sod all you can do about that -

Just another example of private schools being full of shit! They’re businesses, they’re trying to sell you something, something that you do t even really need… just treat it like your looking at luxury cars on a car lot, the salesperson is going to play up the positives and downplay the negatives.

If I were yiu I’d be more worried about how much THEY plan to put up fees each year outside of VAT.

It’s nothing to do with charitable status. Many schools are and will remain charities.

Errr Brexit? And it's not that complicated. They are no longer classed as charities. Presumably their best option is to go back to the charity commission and challenge the fact that they are charities. If they are charities they should be able to regain their charitable status if not they have to pay like all other not for profits.

We’re not in the EU. It will be extremely simple indeed to implement. I work in this area. It is 98% certain to go ahead. 20% chance if it being moved to next summer maybe but it is going to happen.

It is against EU law to tax education so it’s not going to be a straightforward process.

Also it’s not going to have any kind of positive impact on state education, quite the opposite.

It was a cheap vote winner which is likely to go horribly wrong. But the people who are seeing no more than people who have more than them being taken down a peg or two don’t want to hear that.

PS, I have no skin in the game, mine were state educated and have left now anyway.

Highly irresponsible of whomever was showing you around to mention the court case as a realistic prospect of changing the inevitability of VAT being applied. That’s not to say I don’t support the court case - and I have written to my MP about my SEN Ed- but i am realistic.

My 2 dc at London schools and both are passing on the majority of VAT. Even schools that are absorbing VAT for January won’t be able to keep it up for long.

you absolutely must factor in vat to your calculations PLUS annual fee increases of at least a few percent every year.

A lot of variety in those schools that have made statements. I read that Eton is adding the full amount. A colleague’s school has done full analysis of costs, removed salaries and other non vatable aspects and worked it out to 9% VAT. DD’s school haven’t released any further information but will be looking to do similar, so expectation is around 10% to 15%.

DD’s school held fees for the last couple of years, small increase this year, so just about doable.

Why the 😂, softening it means reduncies, cutbacks & cancelling extras which attract people to the school in first place. That's if can afford to even stay open

We have priced it in to any cost as many schools have also done this.

Wouldn't get your hopes up on this one.

I honestly think new rules are needed to protect people from chucking their money away in these pointless crowdfunded challenges.

No hope for the challenge.

At present the legislation that would add VAT to schools hasn't even been written into law yet. How do you challenge a law that doesn't exist?

you have to assume it is happening and work out if you can afford it on that basis. Even if the school is doing something initially to offset the entire 20%, they won’t be doing that forever so budget for the full amount plus the usual 5+% increase per year. It sounds like an irresponsible school to be saying that to you tbh.

It won't happen. In summary, it is generally held that countries have the right to make their own political decisions around tax. There has never ever been a tax overturned on the basis of discrimination.

x.com/DanNeidle/status/1832702400253112374?t=rsTPCCcLHjINt7njny3T0Q&s=19

It's going to happen, the school are obviously trying to string you along.

It’s been in most of the papers this week but is mostly around the SEND aspect I think

https://bmmagazine.co.uk/news/labours-vat-on-private-school-fees-faces-high-court-challenge-over-human-rights-concerns/PM

If you are thinking about private school, I think you have to assume that VAT is going ahead so you need to ask the school what they intend to do to
help parents pay the VAT. Some schools have already reduced their fees to help but a lot are waiting for the budget in October. Might be worth speaking to the school after this to understand their plan