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Original poster

Ways to avoid private school fee VAT

433 replies

tiantian1005 · 28/05/2024 14:07

Hi, not looking for a political debate but has this been discussed on how this can be avoided or recovered as in i am sure there is a workaround. Can we pay the school fee via a limited company then claim back VAT or at least claim as expense or can we do this via a trust fund/

OP posts:
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10
AlpineMuesli · 28/05/2024 21:30

This question is so goady.

Oneanddone23 · 28/05/2024 21:45

ExasperatedManager · 28/05/2024 17:14

Most parents who choose to invest in private school fees will have been sensible enough to do a bit of forward planning. VAT on school fees has been in the offing for years, so most private school families that I know (and I know plenty) will have planned around it and built in sufficient buffers to cover changes like this. I do know a few families who are quite pissed off about having to pay more tax but not a single family with any intention to move their children.

Of course, there will be some parents who have failed to plan properly for all eventualities and/or had other unforeseen circumstances that will render them unable to pay the increased fees (which are likely to be much less than 20% extra in reality). In some cases, their kids will have to move, just like others who have had to move because of job losses, parental illness, rising interest rates etc. I do feel sorry for those children having to change schools mid way through their education because their parents have committed to something that they can't really afford, but sadly, kids have to move schools for all sorts of reasons, and sometimes it's just one of those things. With engaged and supportive parents, I'm sure that the vast majority will make the transition successfully. Going to a state school really isn't the end of the world, no matter how some parents choose to portray it.

As far as I'm concerned, it really isn't spite or envy. We could have gone private if we had felt that it was worthwhile, but having considered all options, we concluded that it wasn't worth it for our dc. Other parents will reach different conclusions, and that's absolutely fine. I do not resent their choices in the slightest, I just think it's right that they should pay tax on what I consider to be a luxury purchase.

What I do resent is the ridiculous bleating that I keep seeing on these boards from people who seem to have no awareness of how pathetic they sound. There are so many much bigger injustices in our society to get upset about, how on earth can this be the one that people choose to get so irate about?!

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I resent the holier than thou attitude of posters who have clearly BOUGHT their way into catchment areas of excellent state schools (“we could have afforded private, don’t ya know, but bought an overpriced house instead”🤮). They are so smug and wilfully blind about how they achieved this (pricing other families out).

Not everyone is fortunate enough to be able to afford excellent state schools.

Sherrystrull · 28/05/2024 21:58

@Ciri

Many people don't have extra money. It's not a case of choosing to spend on alcohol or private schooling, it's a case of having a roof over your head or not.

Having enough spare to spend it on private schooling is a massive privilege most people don't have.

Your judgement of state school parents and children seeps out as vitriol.

Labraradabrador · 28/05/2024 22:09

Gladtobeout · 28/05/2024 14:35

What? Children that desperately need an EHCP are being denied one by most councils because of a complete absence of SEN services! Htf does a school claim you can simply apply for an EHCP and get one?

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there are many Sen children in private education, including my dc. The majority of them do not have EHCPs because it doesn’t make much of a difference (currently) in private. In our situation we weren’t prepared to let dc disintegrate to a point where the state was willing to intervene, and being in the fortunate position to afford a nurturing private with good sen support have gone that route instead.

cue Labour’s VAT plans for private, followed by assertion that they will exempt children with an EHCP. Many Sen parents in my indie school are now pursuing EHCPs as a result. It is something we would be entitled to, but have passed on historically. SEN Wait lists in our area are horrendous, and it is totally normal for statutory deadlines to be completely disregarded. It will be a real shit show with all these parents who opted out now opting in at once. And opting in with the support of educational consultants and lawyers to expedite the process and optimise outcomes for those that can afford it.

it is one of many reasons that Labour’s VAT policy is bad news for the education system more broadly. It hasn’t been thought through, and the unintended consequences are abundant.

Countrylife2002 · 28/05/2024 22:10

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This

Labraradabrador · 28/05/2024 22:11

Motnight · 28/05/2024 15:02

In my experience many independent schools won't touch kids with additional needs.

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our indie has 2-3x more Sen than local state schools.

Mia85 · 28/05/2024 22:20

Motnight · 28/05/2024 15:02

In my experience many independent schools won't touch kids with additional needs.

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Your experience may well be specific to particular school(s). Across the sector about 20% of pupils have SEND: https://www.isc.co.uk/media/uukn4r3i/isccensus_2024_15may24.pdf
See page 14 (this only covers ISC schools but that is a large proportion of independent schools).

quantmum · 28/05/2024 22:22

Oneanddone23 · 28/05/2024 21:45

I resent the holier than thou attitude of posters who have clearly BOUGHT their way into catchment areas of excellent state schools (“we could have afforded private, don’t ya know, but bought an overpriced house instead”🤮). They are so smug and wilfully blind about how they achieved this (pricing other families out).

Not everyone is fortunate enough to be able to afford excellent state schools.

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That poster has said nothing about buying into a catchment area nor anything about the state school she's near. What's with the vitriol?

Ciri · 28/05/2024 22:31

Sherrystrull · 28/05/2024 21:58

@Ciri

Many people don't have extra money. It's not a case of choosing to spend on alcohol or private schooling, it's a case of having a roof over your head or not.

Having enough spare to spend it on private schooling is a massive privilege most people don't have.

Your judgement of state school parents and children seeps out as vitriol.

I think you’re just trying to start a fight because there was no vitriol in my post. I literally said it doesn’t affect me. Plus I am state school educated as is DH. Not a good state school either. A crap school on a large council estate that sent on average three pupils to university a year.

1ittlegreen · 28/05/2024 22:32

I don't think you will see a 20% rise all at once, schools will try to absorb some of this.

King's Macc have cut its teacher pensions, for example, which is causing havoc from the other side.

Posting on here about tax dodging is going to infuriate people, especially those who have seen their pensions plummet.

quantmum · 28/05/2024 22:35

1ittlegreen · 28/05/2024 22:32

I don't think you will see a 20% rise all at once, schools will try to absorb some of this.

King's Macc have cut its teacher pensions, for example, which is causing havoc from the other side.

Posting on here about tax dodging is going to infuriate people, especially those who have seen their pensions plummet.

Well exactly - it's obnoxious to talk about tax dodging while insisting that anyone who thinks the VAT is a good idea is causing such huge suffering to private school children.

TheShellBeach · 28/05/2024 22:38

Posting on here about tax dodging is going to infuriate people, especially those who have seen their pensions plummet

Or disabled people who are being told by the DWP that their application for PIP has been refused.

Sherrystrull · 28/05/2024 22:39

@Ciri
I'm not trying to start a fight,

You said... How people spend their extra money is up to them. Some spend it on alcohol, holidays, experiences, bigger houses, clothes, cars etc and others spend it on schooling

You could have said...

How people spend their extra money is up to them. Some spend it on food, heating, a car, childcare etc and others spend it on schooling

Duvetdweller · 28/05/2024 22:40

You’ll just have to cancel Netflix and stop eating avocado on toast

TheShellBeach · 28/05/2024 22:41

Duvetdweller · 28/05/2024 22:40

You’ll just have to cancel Netflix and stop eating avocado on toast

🤣🤣🤣

Countrylife2002 · 28/05/2024 22:42

Sherrystrull · 28/05/2024 22:39

@Ciri
I'm not trying to start a fight,

You said... How people spend their extra money is up to them. Some spend it on alcohol, holidays, experiences, bigger houses, clothes, cars etc and others spend it on schooling

You could have said...

How people spend their extra money is up to them. Some spend it on food, heating, a car, childcare etc and others spend it on schooling

also perhaps rent, council tax…

DrCoconut · 28/05/2024 22:45

How many people trying to get out of this tax would grass a low paid single mum who earned an extra tenner up to universal credit? A lot I'd bet. The hypocrisy about tax avoidance vs claiming benefits can be astounding.

Ciri · 28/05/2024 22:47

Sherrystrull · 28/05/2024 22:39

@Ciri
I'm not trying to start a fight,

You said... How people spend their extra money is up to them. Some spend it on alcohol, holidays, experiences, bigger houses, clothes, cars etc and others spend it on schooling

You could have said...

How people spend their extra money is up to them. Some spend it on food, heating, a car, childcare etc and others spend it on schooling

I was referring to money that people might have once their essentials were paid for. At that point it’s a choice as to how you spend.

clearly not everyone has money left over. As the eldest child of five with a mother who was a cleaner and worked two jobs and a dad who worked shit hours in a factory I know all about scrimping thanks.

you are determined to pick a fight with me for some reason. It suits the narrative of hatred to paint every private school customer as sitting there shining their tiaras.

Ciri · 28/05/2024 22:48

Countrylife2002 · 28/05/2024 22:42

also perhaps rent, council tax…

Show quote history

“Extra money”

Bringonchristmas36 · 28/05/2024 23:05

Rolling make on tax credits and expecting businesses to pay people a fair wage would earn more.

make people pay tax but being practical I do worry about house prices and pricing out further people from being in good catchments.

Labraradabrador · 28/05/2024 23:08

DrCoconut · 28/05/2024 22:45

How many people trying to get out of this tax would grass a low paid single mum who earned an extra tenner up to universal credit? A lot I'd bet. The hypocrisy about tax avoidance vs claiming benefits can be astounding.

I don’t know anyone who would do that.

But if you want to get into the details- undeclared income is illegal, while many strategies for reducing tax obligation are not. When I hit a certain income threshold I dump extra into pension to avoid paying extra tax - a perfectly legal tax avoidance scheme. Presumably op is looking for legal mechanisms for avoiding extra tax, which is a perfectly rational mindset. Virtually no one contributes extra, although that option is open to all.

Sherrystrull · 28/05/2024 23:12

@Ciri

I have no hatred and your tiara comment was unnecessary.

If you can't see how your comments could come across as tone deaf then that's up to you.

Temporaryanonymity · 28/05/2024 23:12

I’m bothered about the children living in poverty and people replying on foodbanks, so I don’t have any time for your tax avoidance scheme.