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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:
horseyhorsey17 · 10/06/2024 11:33

Yawn.

horseyhorsey17 · 10/06/2024 11:38

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

OK I'll bite. You know taxes have gone up £13K per household under the Conservatives - and that for all Sunak yapping on about Labour raising the tax burden by £2K (over 4 years although he forgot to mention that), the Tories' own plans if costed out would raise the tax burden by £3K?

It's a bit rich when the party that's dumped the tax payer* with the biggest tax burden since WW2 uses 'b-b-but they'll raise taxes!' as their biggest attack line against Labour.

*Only us middle earners, of course. Sunak, who mainly pays capital gains rather than income tax, pays considerably less in tax as a proportion of his income than I do, despite also earning considerably more and therefore feeling any tax burden a lot less. Trust the Conservatives with the economy? I'll pass thanks.

wombat15 · 10/06/2024 11:44

Thecatsatat · 10/06/2024 11:24

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

Indicative of Tory supporters that you think insulting people who disagree with you helps your cause.

80smonster · 10/06/2024 12:02

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.

I would imagine it’s potentially the gateway to VAT on unis and private tuition for academic, music, art or drama. We don’t have the full picture yet and likely wouldn’t until the VAT laws are redrafted and proposed with the exclusions stated.

wombat15 · 10/06/2024 12:30

80smonster · 10/06/2024 12:02

I would imagine it’s potentially the gateway to VAT on unis and private tuition for academic, music, art or drama. We don’t have the full picture yet and likely wouldn’t until the VAT laws are redrafted and proposed with the exclusions stated.

What exactly would be the point in charging VAT on unis or anything else that is at least partly funded by tax payers? The government would be taking VAT with one hand and giving it back with the other.

VickyEadieofThigh · 10/06/2024 12:31

horseyhorsey17 · 10/06/2024 11:38

OK I'll bite. You know taxes have gone up £13K per household under the Conservatives - and that for all Sunak yapping on about Labour raising the tax burden by £2K (over 4 years although he forgot to mention that), the Tories' own plans if costed out would raise the tax burden by £3K?

It's a bit rich when the party that's dumped the tax payer* with the biggest tax burden since WW2 uses 'b-b-but they'll raise taxes!' as their biggest attack line against Labour.

*Only us middle earners, of course. Sunak, who mainly pays capital gains rather than income tax, pays considerably less in tax as a proportion of his income than I do, despite also earning considerably more and therefore feeling any tax burden a lot less. Trust the Conservatives with the economy? I'll pass thanks.

This here.

Gondoliere · 10/06/2024 12:34

This country is so far gone that I dot care for anything rather than leaving ASAP. Bunch of assholes from each side.

80smonster · 10/06/2024 12:42

Goldenbear · 10/06/2024 01:52

What Cat is paying for this stuff?

Tax on cats is a genius idea, 10.8 million cats in the UK, let’s call it £2,000 tax per cat, after all they are using the pavements, scrumping for birds, requiring rescue from trees. That’s a lot of wear and tear. I make that 21.6 billion - think of how amazing the schools could be? It’s only fair, pets are for sure a luxury.

80smonster · 10/06/2024 12:49

wombat15 · 10/06/2024 12:30

What exactly would be the point in charging VAT on unis or anything else that is at least partly funded by tax payers? The government would be taking VAT with one hand and giving it back with the other.

Edited

The exclusions have not been clearly set out and will not until the new VAT laws are drafted and proposed. Most UK universities have charitable status and some are private. As I have seen it reported on, UK state boarding schools have been announced as an exclusion. Have you seen different and more detailed information around potential exclusions? Please share here if you have.

wombat15 · 10/06/2024 12:52

80smonster · 10/06/2024 12:49

The exclusions have not been clearly set out and will not until the new VAT laws are drafted and proposed. Most UK universities have charitable status and some are private. As I have seen it reported on, UK state boarding schools have been announced as an exclusion. Have you seen different and more detailed information around potential exclusions? Please share here if you have.

Edited

As some posters keep pointing out, charitable status has nothing to do with VAT. Few universities are completely private though and the great majority receive some government funding. This means it would not be complicated to not charge VAT and even if they did it would have zero effect on students The attempt to scare people is pathetic and no one is falling for it.

Flopsythebunny · 10/06/2024 12:54

Ozanj · 10/06/2024 10:57

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

Nursery fees are not a target

80smonster · 10/06/2024 12:56

wombat15 · 10/06/2024 12:52

As some posters keep pointing out, charitable status has nothing to do with VAT. Few universities are completely private though and the great majority receive some government funding. This means it would not be complicated to not charge VAT and even if they did it would have zero effect on students The attempt to scare people is pathetic and no one is falling for it.

Edited

Nothing has been drafted or proposed, which I think your post acknowledges, until we see the draft (this is nothing to do with charitable status and everything to do with VAT laws - which need amending). Ultimately its very hard to say what will and won't be included or excluded. I have seen no report in the press to counter this consideration, if you have, please share for us?

wombat15 · 10/06/2024 13:27

80smonster · 10/06/2024 12:56

Nothing has been drafted or proposed, which I think your post acknowledges, until we see the draft (this is nothing to do with charitable status and everything to do with VAT laws - which need amending). Ultimately its very hard to say what will and won't be included or excluded. I have seen no report in the press to counter this consideration, if you have, please share for us?

Edited

It's not hard to say what will be excluded given the fact that it would be completely pointless to add VAT to something that is partly government funded. If you want to argue that there needs to be a detailed policy before we know how do we know what the Tories are going to do with regard to university fees? I don't think they have given a detailed policy so that could mean they triple fees, add VAT and massively increase student loan interest.

80smonster · 10/06/2024 13:32

wombat15 · 10/06/2024 13:27

It's not hard to say what will be excluded given the fact that it would be completely pointless to add VAT to something that is partly government funded. If you want to argue that there needs to be a detailed policy before we know how do we know what the Tories are going to do with regard to university fees? I don't think they have given a detailed policy so that could mean they triple fees, add VAT and massively increase student loan interest.

Yes, so as I have said (repeatedly), the new VAT law hasn't been drafted or proposed - so we do not understand exclusions. The Tories haven't suggested VAT on education (possibly private tuition and unis - which sit under the same vat exemption laws currently). So I equally haven't seen any reporting on their intended plans? Have you?

RoseAndRose · 10/06/2024 13:43

wombat15 · 10/06/2024 12:30

What exactly would be the point in charging VAT on unis or anything else that is at least partly funded by tax payers? The government would be taking VAT with one hand and giving it back with the other.

Edited

It's not on the universities though.

If it ever happened it would be on the fees that students pay

People tend to look at what this means for universities and pre-schools because at present they are exempt (legacy EU VAT regulations) relying on the same EU-wide exemption for education.

Abolishing the principle that you don't tax education means the door is that bit further open in future.

And making your flagship policy one that only works by remaining outside EU shows they have no intention of re-joining

Keenoonvino · 10/06/2024 13:46

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Keenoonvino · 10/06/2024 13:48

Because someone will obviously jump on me for that, I am not in any way comparing vat on school fees to the war.

Keenoonvino · 10/06/2024 13:51

And I don’t have children at private school, so this won’t directly affect me. Yet.

Shortfatsuit · 10/06/2024 13:54

80smonster · 10/06/2024 13:32

Yes, so as I have said (repeatedly), the new VAT law hasn't been drafted or proposed - so we do not understand exclusions. The Tories haven't suggested VAT on education (possibly private tuition and unis - which sit under the same vat exemption laws currently). So I equally haven't seen any reporting on their intended plans? Have you?

All of the reporting that I have seen on intended plans sets out very clearly that the tax will apply to private school fees. Not nurseries. Not universities.

There is no reason to believe that there is any intention at all of extending VAT to include these, and the legislation can certainly be drafted to specifically exclude them.

There is, however, a clear vested interest for some private school parents in generating a fear amongst the general population that the VAT might be extended to other areas. Have you seen a single reliable source confirming that this might be a possibility? (That obviously excludes the Tory press, which have an agenda of their own to push!)

MarthaDunstable · 10/06/2024 14:01

RoseAndRose · 10/06/2024 13:43

It's not on the universities though.

If it ever happened it would be on the fees that students pay

People tend to look at what this means for universities and pre-schools because at present they are exempt (legacy EU VAT regulations) relying on the same EU-wide exemption for education.

Abolishing the principle that you don't tax education means the door is that bit further open in future.

And making your flagship policy one that only works by remaining outside EU shows they have no intention of re-joining

Students don't pay the fees though. The Treasury does, in return for a tax on graduates. That's why the fees have only increased by a ludicrous 3% in 13 years. That's why there's no reason to expect that this would happen.

It's like saying that the sugar tax opens the door to putting VAT on milk because it's got lactose in it.

Halfemptyhalfling · 10/06/2024 14:06

The country benefits from people with degrees eg less likely to smoke or drink, thinking skills helpful for governance and business. Private school education only benefits and already rich ( and a minority of others who already prioritise education). It inflated salaries so people can afford fees

wombat15 · 10/06/2024 14:15

RoseAndRose · 10/06/2024 13:43

It's not on the universities though.

If it ever happened it would be on the fees that students pay

People tend to look at what this means for universities and pre-schools because at present they are exempt (legacy EU VAT regulations) relying on the same EU-wide exemption for education.

Abolishing the principle that you don't tax education means the door is that bit further open in future.

And making your flagship policy one that only works by remaining outside EU shows they have no intention of re-joining

There would be absolutely no reason to charge VAT on student fees and even if they they could easily lower fees to make up the difference so it wouldn't effect what students pay. It would be a totally pointless exercise. It doesn't show they have no intention of rejoining the EU one day in the future. It just shows that it won't happen immediately but we know that anyway.

randomchap · 10/06/2024 15:19

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A nice example of Godwin's Law in action there. Well done.

HowardTJMoon · 10/06/2024 17:01

My God @Keenoonvino, I've seen people quote Niemöller about some inappropriate things but you have taken not just the cake but the plates, scones, little cucumber sandwiches and the whole damn tea trolley.

Get a grip.

fliptopbin · 10/06/2024 17:15

HowardTJMoon · 10/06/2024 17:01

My God @Keenoonvino, I've seen people quote Niemöller about some inappropriate things but you have taken not just the cake but the plates, scones, little cucumber sandwiches and the whole damn tea trolley.

Get a grip.

And you win today's award for the most British comment.

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