VAT on school fees not applied retroactively- ultra wealthy are safe

[Kitkat189]

VAT on school fees won’t be applied retroactively to school fees paid before 29 July meaning if you paid your child’s entire education upfront, you escape the 20% increase. I know people who did this in the hopes that this would happen and now it has. TELL ME HOW THIS IS FAIR??? The ultra wealthy won’t be impacted by this at all while other families are going to have to move their children. To those of you who support VAT on school fees, please know that it won’t apply to everyone and that some of the revenues from this will be lost. If you think it won’t matter because very few will have prepaid, you should disagree with this on principle.

regardless of where you stand on the topic of VAT on school fees, I think we can agree this is fundamentally unfair.

Nope. You're pissed off because there are people richer than you. Just the same as there people poorer than you who are pissed off.

Because vat isn’t a punishment, no matter how much you wish it would be used as such. I am fully in support of VAt on school fees but to impose it retrospectively would be wrong.

Wow, those ultra rich, using their money to hoard privilege. What a shock!

it’s almost like the private schools, and the people who send their kids there, are only out for themselves, and don’t mind who gets crushed in the process.

if only there was some kind of alternative system … where everyone paid their fair share into some kind of collective education that aimed to support everyone, not just the children of selfish - I mean rich - people.

The ultra rich are always safe, this doesn't invalidate the VAT change.

God ! We don’t care !!!!!! See other 1000 threads on this

Honestly now, is there not a single other thread, that has been started today even, that you could have just continued?

you should disagree with this on principle.

Little Miss Bossy Boots! 😆

I disagree with private schooling on principle, will that do?

OP, you have bigger things to worry about and you know it!

Since when is everything in life fair?

Maybe they'll change their minds and back date it. That'd be good. Massively in favour of it being backdated, same as your regular tax would be if they found out it was wrong. Maybe some payment plans to make it fair.

Instead of having a go at the government, maybe have a go at your kids' school and ask why they aren't covering the difference themselves and taking the hit on it, or at least meeting you halfway.

I suppose it keeps the riffraff out

What is the source of your information please?
We have been waiting for info from the school on whether we can pay as much as possible upfront.
In case it matters to anyone, we have been looking at whether we can borrow from family / elsewhere in order to do this as interest fees likely to be less than 20% and therefore still a cheaper way of allowing our daughter to finish her GCSE's at her current school.

Everyone who has been paying private school fees in ultra wealthy.

Life’s not fair. Some you will, some you lose.

you’ve missed the boat

oh apologies i misunderstood

Oh yay, another pissy VAT thread.

Err...doesn't your link state that all private schools fees are subject to VAT including those who pay up front from today?

HMRC will scrutinise the prepayment schemes.

Forgot to say that all ps fees subject to VAT from 1st Jan 2025 - no matter when the UHNWI or anyone else pays.

It's like car insurance, if I don't pay for the year (which I can't afford to) I get the joys of paying more over a longer period. It's not rocket science that those that are wealthier pay less.

Another example is when I was looking at energy prices, I wasn't eligible for some because I don't own my own home... how that makes a difference is beyond me.

They would have had to have paid it last week to have taken advantage of that. I strongly doubt even wealthy people would have preempted this for anything more than next years fees.

The well known schools like Eton, Rugby etc will be fine but parents paying up front at small, less well known schools are taking a big risk by paying up front.

We did consider pre paying but it wasn't clear if labour wouldn't find a way around that so didn't.

Luckily not too many years left for us and one of the schools our children attend has said they will reduce the fees to take into account a VAT increase.

But I am so bored of reading how we have evaded taxes by not paying VAT. I have 3 dc all of whom have been privately educated the entirety of their school careers - we have paid fees but also paid our taxes to fund state education for others.

I am intrigued to see what the implications of this will all be in the coming years - I know locally to me where there are may privately educated children that many parents who would have been enrolling their 3 year olds aren't any more - they will simply use the outstanding state schools near them and move to areas if necessary for good secondaries.

I know people say that overall due to declining birth rates there are/will be plenty of state school places so I hope it all works out.