Phew! VAT outcome….

[EverythingAllatOnceAllTheTime]

To all those fellow private school parents worried about fees, on Friday our DC’s school advised they will be passing on 8%, with overseas students being liable to ‘differential pricing’, taking the pressure off UK based students.

This is a great result - fingers crossed others schools are able to manage the increase similarly.
Best of luck!

We’ve had our invoice for the autumn term and it’s the already advised 8% increase on fees alone.

What I’m confused about is presumably unless the school reduces the fees for the year, it will be a straight 20% added for spring and summer? All we’ve had is a ‘we’re working on it’ email and they’ll be in touch before September, and then the autumn term invoice dropped a couple of days later with no changes.

Yes, that’s right, Howl. If the VAT had come in from Sep 2025 then you would have just had the 8% fee increase for the whole 24/25 year. They may choose to charge a slightly lower base fee in spring and summer, but if not, you will pay 20% on the new fee.

DS school has increased fees by 7% for this year already so I very much hope they absorb a chunk of the VAT, no announcements yet. They are really small and my biggest fear is them closing, DS is going into year 10 we don’t have many viable alternatives as we live rurally. I don’t object to VAT in principle, I’d prefer to send him to a decent state school, am extremely lucky to have this alternative. Our state post 16 options are great, so just got to get through the next 2 years.

Fingers crossed- I wish you all the best.

Schools in general really couldn’t, though a few with massive endowments could, perhaps.

Simplistically, if my fees are £20k pa and there are 150 kids in each year and 7 years, school income is £21m. Majority of costs are teacher salaries and pensions, and don’t reduce with any VAT change.

With VAT, my fees are £24k a year but school income is still £21m.

If school absorbs the VAT so parents still pay £20k, it only receives £16.67k pa per child and total income is £17.5m. Few schools can cut enough pony classes for Tamara 🙄 to make up a £3.5m drop in income.

That’s great news for you, what a result. We had an 8% increase advised in spring term and have been been told to anticipate a full recharge of 20% added to our invoices. So a 28% increase in fees across a matter of months. Maybe your school is part of a large group? If so they are more likely to be able to offset.

I am sure a lot could cut the fat. But then you'd be left wondering why you don't just send your kids to state.

For those hoping to pass the tax on to the internationals - are there enough oligarchs still wanting to send their kids to board in the UK and foot the bill?
English middle class hoping to survive on the influx of dodgy money - I can't believe I've lived to see this. What a joke...

Read the topic "do most children love school" and your (rhetorical) question is answered.
The same posters who enjoy watching the VAT turmoil admit their children hate their state schools. Who would have thought!

I have zero skin in this game except that I think private schools confer unfair advantage and it's right to tax them.

This shows you have more than zero skin in this game :) Otherwise you wouldn't be bothered really.

There aren’t many businesses that could “cut the fat” to absorb a 17% loss of income overnight.

Or perhaps you have taken your own username too much to heart?

Nasty!

That is such a ridiculous comment and shows not only a lack of ability in basic maths .. but complete lack of any understanding of the current political climate .

Not only is KS going to do this and has a simple majority of 411 so it can't be stopped - but many of us voted for him specifically so he would do it - private schools being VAT exempt has long been an anomaly.

Our public services are on their knees . Do I want libraries job centres and councils to have more money - of course I do .. where does the money come from .. VAT on private school fees is a perfect start and affects less than 7% - of which very few would have voted for him anyway so no loss.

For labour voters , SNP, Lib Dem Green would vote with them .. it's extremely popular.. but he doesn't need them . 411 is plenty enough to do on his own.

What makes you think the money will go to libraries etc?
War is a very expensive business for the common people and the most profitable one for the elites.

I agree on one point though - VAT is only a start, for sure.

It has been said many times, but no VAT on education isn’t an anomaly. It is European law, but since Brexit the Labour Party has had the ability to go for populism over realism. It will raise no net money, I think that is pretty clear now.

They came for the private school parents, and people like you gloated. They have had a pop at pensioners (am sure they’ll be more to come here). Next will be the middle classes with some savings and a private pension. Then anyone who drives a car. Then energy costs. Who knows what next, but don’t assume you are immune.

Not only is KS going to do this but many of us voted for him specifically so he would do it - private schools being VAT exempt has long been an anomaly.

A perfect example of class division and hatred.
Also ignorance, of course - it's not just the EU where private education is exempt from VAT, and there are reasons for this.

Oh give over with your “class division and hatred”. I am a private school parent who voted Labour and I don’t particularly object to this policy.

It is entirely reasonable to think that a service purchased by some of the wealthiest people in the country, for which there is a state alternative, should be subject to VAT.

I am also a Remainer. It may be an issue if we want to rejoin the EU in the future, but it’s about 768 on the list of issues the EU would have with us, so it’s not worth thinking about that - it could be removed again, if it came to it, a far smaller issue than joining the euro.

I'm a private school parent who is a member of the Labour party, so what? As a member, I read Marx, just in case :)) Middle class is clearly a new proletariat to exploit, for various reasons. It is also surplus to requirements now that the economy is rapidly changing.
I recommend the PPE classics :)

You won't be able to rejoin the EU as there won't be "the EU". It's already disintegrating, haven't you noticed?

“For those hoping to pass the tax on to the internationals - are there enough oligarchs still wanting to send their kids to board in the UK and foot the bill?
English middle class hoping to survive on the influx of dodgy money - I can't believe I've lived to see this. What a joke...”

Hehe, this is funny and embarrassing at the same time @Ubertomusic
So when our unis rely on huge amounts of overseas fees at above 50k in some cases, that’s alright, but when it is private schools it isn’t?
Where the heck do you think they got the idea from in the first place?
It’s like Russia in the early 2000s, 10x more for a “foreener” to see the Hermitage than a Russian.

This policy in London at least will hit economic migrants who came to fill jobs and pay a huge amount of tax and have no long term loyalty to Great GB. Go figure what effect this will have on team GB public services when they make a swift exit, considering as a group they pay a huge amount of tax.
People are personally offended by this policy and will take action one way or another, it’s not going to benefit the state sector or anyone. It’s a shambles!!!

Am I right in thinking that if a school is not rising their fees for 4 years as an example…then basically it’s a 20% increase in one go and then flat for 3 years, so your basically paying the annual 5% rise in one go early on and then no rise for 3 years or so.

I'm just observing the developments, no moral judgment here :) I think I (used to) belong with middle class so it's kind of "morituri te salutant" feeling :)

Good luck. This policy won’t affect me personally, but I do strongly disagree with it. It hasn’t been properly thought through and the sums don’t add up.

I can't imagine why anyone would be against it except for selfish reasons.

Putting VAT on school fees will make the UK an anomaly as we will be the only country in Europe doing it. Furthermore, a number of countries actually contribute towards private school fees (such as Australia and some U.S. states).

Education benefits the whole country and therefore the whole country should pay for it. Making a small percentage pay extra tax for a service they don’t use and which doesn’t take into account their income and assets isn’t a good model for fair governance.

And you’re wrong about the Lib Dems. They oppose the policy and were vocal about it during the election campaign.