Private school payment in advance to avoid VAT

[SadOhShea]

Our DD is at a private primary school. We love it. There is now clearly a very real possibility that a labour government will come in and fees will rise by 20%.

The school have offered parents the opportunity to take part in a payment in advance scheme - where we pay the fees for the remainder of her time at the school thereby avoiding any increases.

They have said were someone to choose to leave the school then you would be refunded for the time you had left IYSWIM.

Are all independent schools doing this, and should we?! It would be a huge layout - she's only in reception so would need to pay six years of fees (school goes until 11) the amount would be over £100k but would save us over £20k if labour were to implement their plan which they obviously are!

Only around 50% have charitable status. It’s 70% of ISC schools, but an estimated 50% of all private schools.

Many schools keep local economies afloat. Schools in market towns for example provide a bedrock of the local economy, employing a very large proportion of the local population. They are adding to the local economy, not taking away.

They can add to local employment and economy as well as paying their fair share of tax and rates though, like other profit making businesses do!

What about private nurseries? Some nursery chains make huge profits and don’t have to charge VAT on fees. Care homes are the same, and private hospitals.

Around half of private schools don’t have charitable status which means that they pay corporation tax like any other business as I understand it. The other half have to demonstrate to the Charities Commission that they meet charitable standards and contribute to local economies that way.

So now we have the draft and the drop dead date for prepayment of 29th July, how many did pay in advance? __

We did. Paid in advance a few weeks before that date luckily