I work in the finance dept of an independent school i am pzzled that you think we get funding from the state ?We have geographic bursaries avaliable these are not the same as scholarships,they are means tested adn you have to live in the local area to qualify,yes you do have to pas the entrance exam but we do actually take quite a large range of abilities,you do not have to be outstanding to geta bursary.
As a charuty we are not allowed to make a profit an incidentally the fees only cover the costs of teaching ,food ,paper etc,anyt surplus,such as it is is reinvested into the school for the benefit of the pupils.We also provide chess club,sfterschool activities ,music and drama teaching etc to children from all the schools in the area state and private.
On the VAT front because we cannot register for VAT as a charity we have to pay VAT on purchases,currentlt we are building a new classroom blocka dn the VAT on this runs into thousands of pounds,we won't get back a penny of this so it is not all one way.
Many of the families here do not have expensive holidays ,new cars etc they choose to spend their money differently.
Incidentally I would never send a child to an independent school which was owned by the Head,always choose school registered with IAPS,HMC or GSA or similar with a board of Governors.
Sorry this is rather rambling but some of the misconceptions about inde[endent schools on this thread really are ridiculous.