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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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

31 replies

Ourdearoldqueen · 26/09/2024 14:48

You pay your money, you take your choice surely?

OP posts:
Badbadbunny · 26/09/2024 16:14

You don't pay VAT on private healthcare. It's VAT exempt, just like how education used to be.

Surely you should get a tax refund for not using public services and making your own provisions, rather than being taxed on them?

TheJones · 26/09/2024 16:16

Education not taxation Facebook group with legal challenge on VAT

Agree - private healthcare, nurseries and university will fall under the same increase if it goes through.

ATuinTheGreat · 26/09/2024 16:18

loudbatperson · 26/09/2024 15:33

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.

This.

You’re not comparing the same thing at all. If employers were paying for private school fees for their employees’ children, then yes, that would be similar in the way people are saying, but being taxed on private health insurance provided by your
employer is just income tax payable as it is a benefit in kind.

VAT on school fees is nothing like this. It’s having to pay 20% more for something you are actually buying out of already (heavily) taxed income. And also it’s a massive purchase that you’re already committed to.

The effect of it financially for those people affected is as if the government suddenly decided to make everyone pay 20% extra on their mortgage each month as a homeowners tax or something (only in most people’s cases the school fees are more expensive).

You don’t actually pay VAT on private healthcare fees anyway, so it’s not a good comparison at all.

FriendlyNeighbourhoodAccountant · 26/09/2024 17:00

celerymunch · 26/09/2024 16:04

i don’t get mine through my employer 🤷

So the post is irrelevant to you then as I clearly state from an employer, as did the OP.

itchycheek · 26/09/2024 18:48

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

Boohoo76 · 26/09/2024 18:58

Ourdearoldqueen · 26/09/2024 14:51

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.

It’s different because your employer pays for your healthcare. Tax is charged in the same way that you pay tax on your salary. If you paid for the medical insurance yourself, you wouldn’t be paying income tax on it.

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