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Share your dilemmas and get honest opinions from other Mumsnetters.

VAT on private school fees the gateway to VAT on university?

147 replies

LalaPaloosa · 07/06/2024 20:36

Am I being unreasonable to think this is just the beginning for VAT on education? Once VAT on private schools is bedded down, Labour will start looking at universities. Think about how much they can make there.

OP posts:
MidnightPatrol · 10/06/2024 09:00

I doubt it.

It would be a bit of an own goal for the government, given most students won’t manage to pay off their loans.

It would in all probability end up being written off.

Thecatsatat · 10/06/2024 09:10

MarthaDunstable · 10/06/2024 07:42

Private school fees are paid in the vast majority of cases by private individuals. If you charge VAT on that then it's a gain to the Treasury.

University fees are paid for by the government out of borrowing and repaid in part by students plus interest, which at the moment is slightly less than the government is paying out on their borrowing. So if you increased university fees by 20% then you'd increase government borrowing, you'd increase the unrepaid deficit that the government have to pick up, and at the moment you'd increase the excess interest they have to repay. Can you see why that's not a gain for the Treasury?

The govt pays. Correct. Where does the govt money come from? The tax payer.

Uni fees will increase for sure. They could justify putting VAT on top too, given they will have justified VAT on education already.

So yes all of our taxes will go up. Inevitable. And Labour will do that.

Again increasing the equality gap, some people just won’t go to uni. The loophole of never paying back will be closed, the country can’t afford it

Shortfatsuit · 10/06/2024 09:11

Thecatsatat · 10/06/2024 09:10

The govt pays. Correct. Where does the govt money come from? The tax payer.

Uni fees will increase for sure. They could justify putting VAT on top too, given they will have justified VAT on education already.

So yes all of our taxes will go up. Inevitable. And Labour will do that.

Again increasing the equality gap, some people just won’t go to uni. The loophole of never paying back will be closed, the country can’t afford it

Edited

You seem to have totally missed the point that @MarthaDunstable was making.

MarthaDunstable · 10/06/2024 09:16

Thecatsatat · 10/06/2024 09:10

The govt pays. Correct. Where does the govt money come from? The tax payer.

Uni fees will increase for sure. They could justify putting VAT on top too, given they will have justified VAT on education already.

So yes all of our taxes will go up. Inevitable. And Labour will do that.

Again increasing the equality gap, some people just won’t go to uni. The loophole of never paying back will be closed, the country can’t afford it

Edited

But it would make no financial sense for the government to charge itself/the treasury/the taxpayer an extra 20%. And it would be politically disastrous.

There's no incentive in any sense for any party to do it, whereas the financial and political incentives of VAT on private schools are obvious. You might as well decide that they're going to put VAT on care homes, or impose an extra luxury tax on wheelchairs.

randomchap · 10/06/2024 09:24

Cchq busy this morning

Bit of scaremongering, and making up hypothetical scenarios that are never going to happen to make Labour look bad.

To make it simple, VAT is added to luxuries, private schooling should be considered a luxury, university is not a luxury.

Thecatsatat · 10/06/2024 09:25

MarthaDunstable · 10/06/2024 09:16

But it would make no financial sense for the government to charge itself/the treasury/the taxpayer an extra 20%. And it would be politically disastrous.

There's no incentive in any sense for any party to do it, whereas the financial and political incentives of VAT on private schools are obvious. You might as well decide that they're going to put VAT on care homes, or impose an extra luxury tax on wheelchairs.

I don’t think the current model of not paying it back, can continue. As I said above.

Thecatsatat · 10/06/2024 09:27

randomchap · 10/06/2024 09:24

Cchq busy this morning

Bit of scaremongering, and making up hypothetical scenarios that are never going to happen to make Labour look bad.

To make it simple, VAT is added to luxuries, private schooling should be considered a luxury, university is not a luxury.

No. VAT is not on school fees because school is an educational service. There is currently no VAT allowed on (any) education. To make it simple.

The issue with starting VAT on educational services, is where does it end?

You say uni is not a luxury. I’m afraid in very many cases, it is.

Gondoliere · 10/06/2024 09:29

Maybe. Thornberry already admitted that numbers of pupils would go up on State schools. Obviously. 🙄Wait and see where envy takes this country.

titchy · 10/06/2024 09:32

The current model of 70% of unis fees being paid back is a feature not a bug. It's the system working. That's what it's supposed to do. The alternative is Gov funds the lot up front. That would be waaaaaay more expensive.

And yes - tax threads on private school VAT - fund the NHS twice over that Grin

randomchap · 10/06/2024 09:33

Thecatsatat · 10/06/2024 09:27

No. VAT is not on school fees because school is an educational service. There is currently no VAT allowed on (any) education. To make it simple.

The issue with starting VAT on educational services, is where does it end?

You say uni is not a luxury. I’m afraid in very many cases, it is.

Edited

Private schools are a luxury as there is a standard state system that any child can go to.

Just because something is educational doesn't mean that it's not a luxury.

twistyizzy · 10/06/2024 09:33

randomchap · 10/06/2024 09:24

Cchq busy this morning

Bit of scaremongering, and making up hypothetical scenarios that are never going to happen to make Labour look bad.

To make it simple, VAT is added to luxuries, private schooling should be considered a luxury, university is not a luxury.

Wrong. VAT isn't a luxury tax hence why ice cream is VATable but frozen yoghurt is exempt.

Whatafustercluck · 10/06/2024 09:37

Oh good, another thread about VAT on private schools. I needed a break from talking to everyone I meet about how shit the weather is.

BigCroc · 10/06/2024 09:38

As the EU does not permit the taxation of education, Labour is only able to do this because of Brexit.

Horseebooks · 10/06/2024 09:45

No but what about the cat. Is it my cat? I don’t think she’s paying for fuck all, she’s an arsehole. Probably votes Tory

Thecatsatat · 10/06/2024 09:48

Horseebooks · 10/06/2024 09:45

No but what about the cat. Is it my cat? I don’t think she’s paying for fuck all, she’s an arsehole. Probably votes Tory

That double negative is problematic. However I do agree, cats have no fck to give about anything. Apart from food. And boxes. And warm fireplace in winter. Are they Tory traits?

Horseebooks · 10/06/2024 09:53

Thecatsatat · 10/06/2024 09:48

That double negative is problematic. However I do agree, cats have no fck to give about anything. Apart from food. And boxes. And warm fireplace in winter. Are they Tory traits?

Edited

Shit you’re right, I’m sorry. Was too focused on the cat. They are selfish though you’re right

GeneralPeter · 10/06/2024 10:17

VAT rules can be absolutely bizarre, and create lots of weird legal cases.

It's not as simple as luxury vs not.

For example, toilet paper is VATable while caviar is not. Children's clothes are zero-rated while adult clothes are not. VAT on food depends on the temperature at which it is served (too hot can be deemed cold). Goat fur clothing is zero-rated, unless the goat was Tibetan, Yemeni or Mongolian. Gingerbread people can have two chocolate dots on them before VAT becomes payable, and on and on.

www.marcusward.co/some-odd-vat-facts-2/

I don't have very strong views on private school fee VAT, but consistency is not the game here.

wombat15 · 10/06/2024 10:48

OP, there have been loads of threads regarding this already and no one is falling for it. I am sure you can search and find. That's if you didn't start the previous ones of course.

RoseAndRose · 10/06/2024 10:56

At present, there is no intention to charge VAT on fees other than in private schools.

But yes, this is (potentially) a step towards doing so, as once UK has abandoned the EU ban on taxation on education then there is no particular bar to salami slicing the way to VAT on other fees currently covered by the pre-Brexit ban.

Piddypigeon · 10/06/2024 10:56

🥱

Ozanj · 10/06/2024 10:57

nursery fees are the more immediate target as that’s an area the government is struggling to fund.

wombat15 · 10/06/2024 11:14

Acrossthemountains · 10/06/2024 06:47

I'm voting Labour purely because of the ott reaction of the tone deaf private school parents on Mumsnet highlighting societal inequalities and the need for this kind of proposal to redress the balance. I had been planning to vote either lib dem or the local independent but every time i see another whining post by rich people about paying VAT on a luxury service, it strengthens my resolve.

Yes, I think the posters going on and on about it and trying to scare the rest of the population are just demonstrating that they live in their own little bubble.

Thecatsatat · 10/06/2024 11:24

wombat15 · 10/06/2024 11:14

Yes, I think the posters going on and on about it and trying to scare the rest of the population are just demonstrating that they live in their own little bubble.

Such schadenfreude is predictable. Depressing really. But indicative of labour and their supporters.

GentlemanJohnny · 10/06/2024 11:30

Who knows? Who cares?

Just so long as Labour get the Tories out, they can put VAT on anything and everything so far as I am concerned, and it'll be well worth the price.

VickyEadieofThigh · 10/06/2024 11:32

TheGrimSqueakersFlea · 07/06/2024 21:21

Rent has been going up rapidly, budget cuts everywhere and the Tories have come after disabled people. But fucking VAT on school fees is the thing angering some 🤯

THIS.

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