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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

I genuinely want pro-VAT people to answer these two questions

1000 replies

Seenandheard · 23/07/2024 17:46

(1) Do you realise that a private school child saves the tax payer/government thousands of pounds per year by not taking up a space in state school? Not to mention the space in the classroom/competition for places? (Do you care about this point or gloss over it in your minds?!)

(2) Do ypu realise that taxing education is illegal in the EU?

Yes or no to both points, please.

I do not want reams of uninformed angry opinions. I don't want this to turn into a multi page thread/bun fight. I just want to understand whether people realise these two points, really, truly understand them. Because it seems to me that there is a mentality of "they're getting a tax break" (WRONG) or "they're taking something away from my child" (WRONG) or "they can afford it so they can spread their wealth a bit" (I'm not going into the fact that my family spend more on taxes than Nordic countries, who have a far, far higher standard of living. We give so much, get almost nothing in return- but apparently we need to give more. More. More.)

I think my deep rooted anger here is to do with people's attitudes and uninformed opinions more than the policy itself. I need to know if people are aware of the facts.

OP posts:
Thread gallery
8
NeverDropYourMooncup · 23/07/2024 20:33
  1. No. There's plenty of spaces. Bring them on.
  2. We're not in Europe in that sense anymore. So it's irrelevant.
  3. We don't care. Should have worked a bit harder, got a better job, maybe took in some ironing or whatever it is that you claim the people who could never afford even the registration fee for a private school should have done.
  4. Just in case you didn't notice over the top of your puffed up sense of entitlement; we don't care.
Icantpaint · 23/07/2024 20:33

Pogpog21 · 23/07/2024 19:57

Ha! True

Ha yourself. It’s bollocks

absquatulize · 23/07/2024 20:34

YourOchreKoala · 23/07/2024 19:30

Once again the majority of people don’t understand the basics

(A) charging VAT is nothing to do with being a charity or not. It’s do with the law at the time about what VAT can be charged on. Farmers and supermarkets are for profit and don’t charge VAT on milk or carrots etc. Similarly charities do charge VAT on most non-donated items they sell.

(B) most private schools are charities for the simple reason that no-one owns them, and any profits, rather than being paid to shareholders as dividend, have to be reinvested back to provide education. Any surplus they make the charity trustees can decide to either save in the charity, use to provide bursaries, or make investments (new classrooms, books etc). You can’t stop them being charities. It’s not like shareholders will magically appear and start taking profits and dividends out of them. Why are they charities? Well most were set up back in the day when there wasn’t state provided education by some rich folks to provide education, and were done so as charities.

In the interests of factual accuracy I would like to point out that about half of private schools are charities.

https://questions-statements.parliament.uk/written-questions/detail/2022-05-16/HL279

Owlbookend · 23/07/2024 20:34

LegendInMyOwnLunchtime · 23/07/2024 20:26

@Owlbookend I suspect that lack of understanding about VAT is at the heart of this. And i am baffled by many aspects of AT.

It does often seem to be a luxury tax (on sales) - why are plain biscuits not VATable but ones wholly or partially covered on chocolate are?

I thought VAT was a tax on goods where - literally - value has been added. So eggs, flour milk are not taxed as basic ingredients but ready made pancakes are taxed because the making of them has added value?

And yet biscuits are all 'made' of basic ingredients...even without chocolate.

So it does seem like a 'luxury' tax?

Two key exemptions are staple food & children’s clothes. I think it is the fact that ‘luxury’ food is taxed (your kitkat 🙂), but not your staples (your digestive). However, once you look beyond food it is clear that most non-luxury products are VATable. Your oven, your coat, your washing machine …. Unlike in the US tax is not added separately it is just incorporated into the price we see in the store so we just don’t think about the fact it is added to most things.

Schoolofish · 23/07/2024 20:34

Mummmm07 · 23/07/2024 20:19

No, but the fundamental principle of it is stupid. Simply because rather than focusing on this, they should focus on closing tax loopholes for the rich. At the end of the day, they won’t make much money from it because most of the richest parents paid for their fees now upfront before this measure is put in. If they did abolish private schools
tomorrow, it’s that it would take forever for the changes to be made like everything. And actually, no, I don’t breed inequality. If we had to send out child to shit state schools, we would home educate or leave.

why can’t we do both? Put vat on private schools and crack down on tax avoidance? You still don’t seem to understand that the private school debate isn’t about money/the tax raised, it’s about a fundamentally unfair system where a minority of children get a better chance at their future because their parents can afford to pay for it.

yes, it will take years to achieve, which is why we should start now.

home education is a choice, if you think your kid will end up better off at 16 after home education than state school then fair play.

skyfalldown · 23/07/2024 20:35

I very rarely go to the doctors/hospital. I guess that makes me a hero of the people because I am saving YOU, the taxpayer, thousands of pounds by not taking up appointments. People who need to go to the doctors often should all bow down to me and my noble sacrifice

Dorisbonson · 23/07/2024 20:36

Whatevershallidowithmylife · 23/07/2024 17:49

Yes, and I don’t care. All businesses are liable for VAT, it really is that simple.

Universities arent.

YourOchreKoala · 23/07/2024 20:40

Whatevershallidowithmylife · 23/07/2024 17:49

Yes, and I don’t care. All businesses are liable for VAT, it really is that simple.

And per my post earlier, supermarkets don’t charge VAT on most food, and charities do charge VAT on non-donated items.

it’s just nonsense to say that all businesses charge VAT

similarly it’s nonsense to say private schools are businesses when many/most are charities (and thus don’t have shareholders/ owners or anyone to pay profits to)

Still, why let facts gets in the way.

YourOchreKoala · 23/07/2024 20:42

absquatulize · 23/07/2024 20:34

In the interests of factual accuracy I would like to point out that about half of private schools are charities.

https://questions-statements.parliament.uk/written-questions/detail/2022-05-16/HL279

Fair.

That doesn’t change my point that VAT and charitable status are fundamentally different topics and conflating them, whilst politically useful, is a nonsense.

leeverarch · 23/07/2024 20:43

Utahthecat · 23/07/2024 18:06

I'm not sure private education in most of the EU is like it is in the UK. Certainly in Ireland and France fees tend to be a fraction of what you pay in the UK and much of their running costs are actually covered by the state. Do private schools in the UK really get no funding from the state at all? Every single penny of costs is covered by the fees?

Quite a lot of private schools are registered charities, so it is possible that they can recover Gift Aid from the Government on donations made to them by philanthropists, alumni and the like - possibly via an associated charitable arm rather than the school itself.

I could be wrong - this is not something I have ever needed to look into in the course of my work (although I have previously worked in finance for charities, Gift Aid is not my area).

Icantpaint · 23/07/2024 20:43

LegendInMyOwnLunchtime · 23/07/2024 20:13

I have been anti-VAT on private schooling because of my understanding the 'education' in general is exempt and therefore University is exempt. Could you explain why VAT can be charged on private school fees but could not be charged on Uni fees? Thank you!

I’m not saying it could not, I’m saying it’s not a natural consequence, it’s not something has to follow, and it’s not related.

It’s perfectly feasible to add vat to school fees and not university fees. Any subsequent decisions can be made on university fees.

Yabusux · 23/07/2024 20:43

Southbound47 · 23/07/2024 20:30

Yes I realise both of those things. I am a private school parent AND I am pro VAT. Both me and DH work full time and make sacrifices to afford private education I am still pro VAT its only fair, we were both state educated, we get it. I am really tired of the wealthy non-working mums at my DCs school (sorry it is 'mums' not 'parents') dropping the DC off in their porsches and Range Rovers, multiple foreign holidays a year then moaning all over the school whatsapp groups about how they shouldn't have to pay VAT. Sadly it has really affected my relationship with many of the other parents, I am struggling to see their point of view. Obviously I'd rather not pay VAT, but I feel lucky that I haven't had to so far.

I second this. I was a private parent ( and state school, at different times). To the OP, yes I really truly understand point 1 and point 2. You condescending prick.

Jensjdhb · 23/07/2024 20:43

It’s clear -

I’m not asking you to care about VAT on private schools (bring it on makes very little difference to us and it really really isn’t something private school parents think or talk much about) Just like I don’t care about state schools . Like we literally don’t think about them- or care. You crack on with your life and we will ours. You don’t see private schools parents weighing in about state schools…. probably because we’re on our massive yachts with our generous holiday allowances .

But please gosh stop posting about VAT on private schools- it’s dull and boring. You’re asking people’s opinions who those in private schools don’t care about 🤷‍♀️ are you trying to change people’s minds- why?!! You don’t need to- you are not them, you lead your own life - why are you asking Janet who is on UC and wants to lift the 2 child benefit- her opinion on something that she has no influence over- I don’t ask them what colour my next Porsche should be or wether Fortnum and Mason is become a little too boujie for my liking.

DontBiteTheCat · 23/07/2024 20:46
  1. Yes.
  2. No, but the comparison is irrelevant because we are no longer in the EU.

Honestly, I don’t care about either of the above.

absquatulize · 23/07/2024 20:47

VaccineSticker · 23/07/2024 20:19

It doesn’t matter. Apparently there is a valid case of discrimination there. Cant remember where I read it. They can’t make private schools add VAT on fees without making university fees be subject to the same thing. I

But they can have VAT on chocolate digestives, but not plain digestives. Pull the other one.

Dorisbonson · 23/07/2024 20:50

chosenone · 23/07/2024 17:52

  1. Yes, I realised that, same with Private Healthcare. I’m hoping it may bring some of those sharp elbowed parents into the state sector to push things and try and improve things for all.
  2. No, I didn’t realise it was illegal to tax Private education across Europe but surely since Brexit it doesn’t matter? Labour have been voted in democratically with this issue high on their agenda so it seems a fair policy.

1)a)If you think a labour government is going to improve schools because a bunch of tory voters can't send their kids to private school anymore I don't think you are being realistic.
B) if you want people to improve state schools become a governor and start to ask the head questions about discipline, hours of homework a week and academic rigour.
C) Why do you think parents who used to send their kids to private schools will improve state schools?
D) you know labour politicians will continue to send their kids to super top state schools like Blair did.
E) if you think tory voting private school parents are so good at organising high achieving schools why would you vote for a labour party which will implement policies opposed by those parents you believe will drive improved results? Eg you think tory parents will improve schools so you vote labour? Logic seems wrong

lolly792 · 23/07/2024 20:53
  1. yes, I understand it but I still believe it's entirely reasonable to remove the VAT exempt status. Private schools are a business. It's not compulsory to attend one, it's a choice.

  2. yes I knew that but only because it's been banged on about on Mumsnet so much!

dottiehens · 23/07/2024 20:55

This country is so fuck up with morons. They got convinced that compulsory education is a luxury. What a joke is this new government. Quite frankly is an embarrassment as it is also not raising enough to warrant such decision. No other country leaders have ever done this.

Curryle3af · 23/07/2024 20:57

Yep and yep.

Still firmly in favour of the policy.

Apolloneuro · 23/07/2024 20:59

dottiehens · 23/07/2024 20:55

This country is so fuck up with morons. They got convinced that compulsory education is a luxury. What a joke is this new government. Quite frankly is an embarrassment as it is also not raising enough to warrant such decision. No other country leaders have ever done this.

Edited

Gosh. That’s interesting grammar!

Maybe have a coffee?

Owchthat · 23/07/2024 21:00

Jensjdhb · 23/07/2024 20:43

It’s clear -

I’m not asking you to care about VAT on private schools (bring it on makes very little difference to us and it really really isn’t something private school parents think or talk much about) Just like I don’t care about state schools . Like we literally don’t think about them- or care. You crack on with your life and we will ours. You don’t see private schools parents weighing in about state schools…. probably because we’re on our massive yachts with our generous holiday allowances .

But please gosh stop posting about VAT on private schools- it’s dull and boring. You’re asking people’s opinions who those in private schools don’t care about 🤷‍♀️ are you trying to change people’s minds- why?!! You don’t need to- you are not them, you lead your own life - why are you asking Janet who is on UC and wants to lift the 2 child benefit- her opinion on something that she has no influence over- I don’t ask them what colour my next Porsche should be or wether Fortnum and Mason is become a little too boujie for my liking.

Peeing myself at this comment - it’s true though isn’t it ? They say to us all the time- we don’t care! We don’t care about your kids blah blah blah and rarely do we say it back- but it’s 💯 true!! And yeah we don’t care of their opinion- private schools will always be around, 20% isn’t that much for 2 kids in secondary it’s around 8k - but how these posters go on about it you’d think someone had destroyed our trust funds or squatted in our holiday homes or something. They think they have a small bit of power to their small lives and can use it over us- but nah we’re all good over here- you do you and concentrate on improving your own life rather than weighing in on something that as private school parents, we don’t really care about 🤷‍♀️

absquatulize · 23/07/2024 21:03

YourOchreKoala · 23/07/2024 20:40

And per my post earlier, supermarkets don’t charge VAT on most food, and charities do charge VAT on non-donated items.

it’s just nonsense to say that all businesses charge VAT

similarly it’s nonsense to say private schools are businesses when many/most are charities (and thus don’t have shareholders/ owners or anyone to pay profits to)

Still, why let facts gets in the way.

In the interests of factual accuracy I would like to point out that about half of private schools are charities.

https://questions-statements.parliament.uk/written-questions/detail/2022-05-16/HL279

YourOchreKoala · 23/07/2024 21:06

absquatulize · 23/07/2024 21:03

In the interests of factual accuracy I would like to point out that about half of private schools are charities.

https://questions-statements.parliament.uk/written-questions/detail/2022-05-16/HL279

And your point is….?

ALL supermarkets aren’t charities and they don’t charge VAT on most food

my point is that being a charity or not is basically irrelevant to the discussion

thefireplace · 23/07/2024 21:07

The wealthy will never use the state sector instead, so point 1 is irrelevant.

We left the EU, so are free to charge VAT on anything and at any rate.

Private schooling is luxury very few of us can afford, so as most luxuries are taxed, why shouldn't luxury schooling?

Some sympathy for those with SENs children, perhaps they'll be exemptions?

To me, this is just another example of the rich desperately hanging on to every penny they've got..... bit like that family (uk based i believe) who virtually imprisoned their workers and paid them a $ a day at their Swizz villa, did this despite being multi billionaires.

Teentaxidriver · 23/07/2024 21:09

Whatevershallidowithmylife · 23/07/2024 17:49

Yes, and I don’t care. All businesses are liable for VAT, it really is that simple.

They are charities. Doh.

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