AIBU to think that VAT on school fees is the same as paying tax on private healthcare.

[Ourdearoldqueen]

You pay your money, you take your choice surely?

It's pretty close. I hadn't thought about it that way.

following that logic

should be 12%

which is the IPT on health insurance

It was that shockingly bad post about the boy fishing that made me think about it that way. I have private cover through work. It’s nice. I jump the queue, I don’t have to sit with the proles if I need anything. But I could also opt out and keep the £ as salary. Can’t see why school fees are different.

im taxed on mine on my P11D, which I think takes into account my tax band.

not payable on permanent health insurance

then that’s a mistake

IPT on health insurance is 12%
0% on permanent health insurance

Permanent health insurance is where you insure your income and it’s paid if you can’t work due to health, right?

I’ve added my kids and partner on, and I pay for them too, at some sort of preferential rate.

correct

i’d be happy with 12% being added on to my school fees

damn sight better than 20% 🤷

It's not a mistake. If the OP gets private healthcare as a benefit from her employers it'll be subject to income tax at whatever rate is applicable.

eligible for tax relief

How?

if your employer is a limited company

sorry ex was a director and that was my experience

what rate do you pay op? on your private health?

What are you talking about? The employer being a limited company or not has no bearing on the OP being taxed on her healthcare as a benefit in kind.

I don't have private care with anyone, I fund it myself.
I agree that it is the same as putting 20 percent vat on it as they have done with private schools.
Supported by jealous people that couldn't afford private schools themselves.
How is taxing private schools going to help all those kids who have lazy parents that don't care bout their education anyway?
How is it going to help state schools improve?
Teachers aren't allowed to discipline anyway so how does taxing private schools give them any power?
It's all lies - it's just taxation and it's supported by jealous people who can't think logically but with jealousy.

what tax rate do you pay on that benefit op?

but like for like comparison is

private school VAt 20%
IPT on private health 12%

A like for like comparison would be including the 20, 40 or 45% tax you will pay for having private healthcare as a benefit from an employer.

The tax you are paying for the healthcare through your employer is income tax not VAT, this is amount referenced on your p11. It's to ensure you are taxed on the payments being made by your employer on your behalf, as they form part of your income.

Private healthcare premiums are not subject to VAT. Instead it is IPT that is charged, and that is 12%.

I support the charging of tax onto school fees, however I think a separate type of tax, such as that for insurance premiums, would be a better approach than VAT.

i don’t get mine through my employer 🤷

and your employer will. e securing private health on your behalf at a much reduced rate than if you’d gone to the open market as an individual

so comparing private health purchased via your employer can’t be compare with VAT on fees

I’m a high rate payer for a PLC, and I’m taxed heftily at my highest rate. The point I am making is, that’s my choice. I could stick with the NHS and take the perk as income. Just as I could stick to state schools and not expect a tax break on the fees.

My family and I save the NHS £££ by using private services. My company pays the premium for me as a benefit and then I pay for the kids and partner at preferential rates.