If VAT is added on Private School Fees, then it will be added onto University fees as well

[AgathaCrispee]

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!!

It’s more scaremongering from private parents. Sorry, not sorry that the embossed notepaper might be on it’s way out…

The way the proposed legislation is worded VAT would be payable on Uni fees (and possibly nursery fees also). It is possible that the wording could be changed to single out the private school sector

No need. It already DOES specify schools, and excludes HE and nursery and childcare provision.

Maybe you should read it?

I have read through various arguments on both sides and thought this may challenge some people's options!

758,855 overseas students
https://commonslibrary.parliament.uk/research-briefings/cbp-7976/
Overseas student numbers in 2022/23 there were 758,855 overseas students studying at UK universities, 95,505 of whom were from the EU and 663,355 from outside the EU. The total was the tenth record high in a row and 26% of the total student population

Approximately 554,243 pupils
www.statista.com/statistics/1447867/uk-private-school-pupils/#:~:text=As%20of%202023%20there%20were,544%2C316%20in%20the%20previous%20year.
As of 2023 there were approximately 554,243 pupils attending private or independent schools in the United Kingdom, compared with 544,316 in the previous year

Why not charge VAT on those overseas students University who haven't contributed to tax system but want to benefit from the education system in the UK. It would generate more in tax income and not overly burden a state system that is clearly struggling, from those in the private system that can no longer afford it.

University's use these overseas student to boost their income and it highlights how University's have lost sight of why they were setup originally.

Happy to hear people's thoughts? But keep them civil.

From a struggling parent with kids who were failed by the SEND resource in the local state schools.

Why not charge VAT on those overseas students University who haven't contributed to tax system but want to benefit from the education system in the UK. It would generate more in tax income and not overly burden a state system that is clearly struggling, from those in the private system that can no longer afford it.

Wouldn't that depend on the UKs agreements with those countries ?

When we were in the EU, tourists from outside the EU were allowed to claim VAT back when they left the country ...

@SerendipityJane
"Wouldn't that depend on the UKs agreements with those countries ?
When we were in the EU, tourists from outside the EU were allowed to claim VAT back when they left the country ..."

This is a fair point. But worth highlighting that 663,355 from outside the EU, that's 87% of the total.

@SerendipityJane that only applies for items they export from the UK when they leave, and goes hand-in-hand with legislation that they may be then required to pay an import tax on the good to their own country's government so the VAT is refunded so that they only pay tax once to one government. They still have to pay the full VAT on goods and services enjoyed while they are here e.g on restaurant bills, food purchases consumed while in the UK, and the VAT on e.g phone services or tv subscriptions that they buy while they are here. The education they receive isn't an exportable commodity so they wouldn't get a refund.

@SerendipityJane sorry I don't follow.

Does that mean the HMRC could generate VAT from overseas students and keep the income as it is not refundable?

Overseas students already keep our unis afloat and subsidise everyone else - so to slap a 20 per cent tax on would be risky. They may stop coming as much and then what? Everyone loses out. The argument is pretty much the same as for private schools. As a matter of principle, education should not be taxed, full stop. It is an investment in the future generation. It is divisive and pointless and was always only political point scoring anyway. It was never going to raise any funds. The problem is they have gone so far with it, they cannot backtrack anymore.

So "Yes" then ?

As a matter of principle, education should not be taxed, full stop.

Why did my employer have to pay VAT on my last training course then ?

Or - to be slightly more germane - why are we not calling for training courses to be VAT free ?

This a moot point as most employers are VAT registered and will be able to reclaim this VAT. The only people who can't are the end consumers.

So if I take a course as an individual, there is no VAT ?

Or is this indeed an example of education being taxed (and has been since forever) but nobody noticing ?

There is VAT on a course (normally viewed as training spend), but as a individual, you can't reclaim the VAT but if you are a VAT registered business you can.

As a matter of principle, education should not be taxed, full stop.