Eton in line for £4.8m in windfall from VAT recovery

Do we know that the figures are inaccurate? We know that input VAT can be reclaimed and that a school will able to reclaim VAT on some capital expediture going back years. Are you saying that the story has used incorrect figures from the financial accounts?

will do literally anything to avoid challenging the narrative

The government are not accepting any challenges to their inaccurate figures. Are we only allowed to challenge figures which show the flaws in this policy?

Not sure what either of those have to do with a comment on newspapers publishing inaccurate stories to generate clicks and engagement tbh.

The post I responded to literally demonstrated why that article was a misleading at best and you've just proved that their readership will do literally anything to avoid challenging the narrative, so thanks I guess.

I agree. I could understand it if it was going to raise any money, but it isn’t. It could even end up costing the taxpayer money. Even the IFS have said that the amounts involved are “tiny” and will make no difference to public spending. It disrupts the lives of some children for the sake of ideology and spite.

And the IFS now say it won't raise what they initially predicted. They are really trying to distance themselves from their own report + the policy.
Luke Sabatier has gone to ground and the head of IFS is leaving. Obviously could be coincidence, but also maybe not

The calculations have been done, presumably, by looking at the accounts, ie based on actual figures. This is in contrast to the IFS calculations which the government are relying on, which is full of inaccuracies because of ridiculous assumptions. The government are using inaccurate figures to try to justify this ludicrous policy.

Ds is at Private school (not Eton or anything remotely like it) so I DO have skin in the game but I would have no issue with this policy at all if it would actually provide any additional resources for struggling State schools
Its an ill thought out and ineffective policy that may actually cost the Treasury money and is based purely on idealogical not practical grounds.

You’re assuming that 100% of the parents will be paying the VAT, on 100% of the fees. Many parents at the wealthier schools have prepaid fees for several years, so are likely to have avoided the VAT.

That’s how VAT works, this was always going to be the case

What’s the new data @twistyizzy ? Out of interest

"They also know that those stories don't have to be particularly robust or accurate" so just like Labour's policies, or Phillipson's posts then?

The telegraph, mail, express, etc know that any story that casts a negative light on Labour will generate clicks and engagement, so they pump them out daily.

They also know that those stories don't have to be particularly robust or accurate as their readership is predisposed to dislike labour and are unlikely to challenge the narrative.

An update to the old saying should be "don't let facts get in the way of generating clicks"

Year 1: Eton collects and hands over c. 13 million in VAT on fees to the treasury. It also receives 4.8 million in VAT refunds- net position treasury still gets 8 million. Eton likely puts the 4.8 m into some sort of capital reserve for future building projects.

Years 2 onwards: treasury gets the full 13 million of VAT on fees less any input tax that Eton is reclaiming- likely to be around 400k based on last 10 years plus bits and pieces on VATable supplies although these aren’t huge for a school whose main cost is salaries.

so the treasury is still doing quite well. It’s not like they’re getting nothing from Eton while other schools are being bankrupted.

I don’t agree with VAT on private schools but I don’t really understand the Telegraph article and think it’s somewhat misleading- especially as literally one years VaT on fees is 3x what they can reclaim on 10 years of capex.

But for those who are supportive of the proposals, even though it has impact on children with SEN and military families…. Are you equally supportive of tax payer money funding swimming pools and boarding houses at the elite schools?

This is just how vat works though. No different to eg a hotel charging vat on its rooms and reclaiming that vat when it builds a spa. By your reasoning that’s “tax payer money funding a spa”. Businesses pay vat on the goods and service they buy and charge vat on the goods and services they supply. Deduct one from the other and the difference goes to the exchequer (broadly). Not sure why the press are talking about this as if it’s some sort of surprise.

It is idiotic and all the rest as you say

You vote for muppets, you get muppets.

Ahh thank you.

Don't be silly. It may take a year or three but it will happen.

It's basic maths but this 4.8 mill will be covered in about 3 years of income from the school. Which isn't that long for a school that been going for over 500 years.

I hope no one from a private school couldn't work that out. I would be asking my old school for a refund if so 😂.

But that's exactly what happens when a company becomes VAT registered, they aren't "allowing" it to happen. That's the VAT legislation. Labour knew that which is why this whole thing is ridiculous

Because thems the rules.

What is idiotic is enabling them to claim back anything. If there's such a "black hole" why give anything back to make ot bigger?

I hope you realise this isn't free money, but money they have already spent which can now legitimately be claimed back. That's how being registered and liable for VAT works.