To think this is ridiculous about Eton v little private school (title edited by MNHQ at request of the OP)

[Sunshineandoranges]

I think it is ridiculous that while some little private schools are closing as they aren’t viable the big posh schools like Eton (edited by MNHQ) will claim back millions on vat paid in the last ten years due to a clause in the legislation. Any school, can claim back vat on capital projects costing over a quarter of a million pounds in the last ten years. Eton (edited by MNHQ) built themselves a swimming pool and dormitories costing millions and are are due to get a £4.8 million rebate. AIBU to think this is very unfair. I don’t have children in private school.

Eh? Labour put VAT on school fees so the schools can now claim VAT paid back. How did you think this stupid spiteful Labour policy would work?

Me tooo 🤣

😀

All companies pass on the VAT to customers. Why wouldn't Eton?

It’s how VAT works. Every company that charges you VAT can claim back the VAT they pay on their purchases.

You could argue that that rule doesn’t make sense. But it’s not some special private school VAT rule

If a small business becomes VAT registered, they can also back date their claims for VAT repayment to recover VAT paid before they registered (there are some rules and restrictions, it’s not all VAT they’ve paid)

The grounds would be amazing - millions spent on flowers.

This has been in vat legislation for quite some time and applies to any business which vat registered. They haven't brought it in so private schools can benefit.

Some will have to leave still do to increased costs, I can see little Daniel waving goodbye….

@Rinkali - congratulations you won Mumsnet today!

I want Elton John to open a school now, I’d totally teach there

Brilliant thread.
I love how half the posts are taking it seriously and the other half are persisting with Elton John references 😂 Keep it up all!

Many OEs in the Labour cabinet????

I read that as Elton John’s school would have an enormous Diana department.

A few! More in the Tories.

And the uniform would be spectacular !

Someone should make that as a show for CBBC!

Lots of tiny dancers in Elton’s school…

AIBU to put the kids names down at birth for Elton’s school?

VAT on private schools is bullshit tho, especially during this crisis for SEN provision in state schools. Taxation own goal dressed up as a victory for the public purse. It won’t gather in more money than it costs in education and other adult benefits and lost tax income from the schools closing down.

Since Jan we are all paying to educate over 11,000 more kids in state schools (because their parents can’t afford private any more), from the same money pot so this affects you a lot of your kids are in state education. Private schools closing means teachers and maintenance staff and the dinner ladies and gents are all laid off. Schools like that in some rural communities are the main employers. There aren’t alternatives.

Gold!

This law makes no sense given Eton are passing on the full 20% VAT payment to parents

This makes no sense either. I pay a tradesman to install a new bathroom, I get the bill cost + vat.

Claiming vat back on new building (as opposed to renovating existing, where full vat is paid, despite being better for the rnvironment) is unfair anyway. I know that’s not your point, sorry!

I was anticipating some dispute in which Mr John refused to return footballs kicked over his fence by the middle-class urchins at a neighbouring school.

There are absolutely not a few OEs in the Labour cabinet. When Labour was first elected last year the cabinet contained only 1 privately educated MP (Louise Haigh who went to a private school in Sheffield).
She’s not in the cabinet anymore and was replaced by Heidi Alexander who went to state school.

And no one needed to secretly leak these plans to Eton anyway. It wasn’t a secret sprung on everyone after the election.

Presumably there's nothing to stop smaller schools doing something similar with their expenditure? No, they won't get back as much money as Eton but they aren't paying as much in the first place.

(I don't understand the £250k thing but it's really not that much in the grand scheme of things; it wouldn't have to be a big building project at all to pass that threshold.)