VAT on school fees - High Court Challenge.

[EverythingAllatOnceAllTheTime]

Labour’s plan to impose VAT on private school fees in January faces a High Court legal challenge over claims it breaches human rights law.

Lawyers have written to HM Treasury arguing the policy discriminates against special needs children and has threatened court action if it is not dropped.

Showtime…

Exactly. I totally disagree with the tax. But it seems even more unfair on people who have no choices like SEN or expats who want to educate their children within their own culture/education system while they come here to work for a few years. There are no state options.

I think the EHCP will simply become a political football between LA’s and Westminster, with each blaming the other.

Meanwhile children and parents/carers will suffer.

All because of a populist measure introduced by Labour.

Mn has been pro Labour for a while, with some attempts to drive out people who disagree by the staunchest Labour supporters.

The Brexit board succeeded in driving out anyone who disagreed with the remainers. They were jeered at and discussed in terms of utmost scorn and derision by the regulars and so gave up trying to have a discussion.
Maybe the regular Labour supporters want to prevent any disagreement on other threads.

Yep. If it was about reducing complexity then there would be no reason to have VAT on private boarding but not state boarding. That one I do find quite odd.

Does anyone know what the justification is for state school boarding being exempt but not private school boarding?

Apart from the obvious populist reason that state-boarding parents aren't 'people we don't like'.

It goes directly against the (very sensible) tax law which says that state organisations can't offer a paid service exempt from VAT which is also sold with VAT applied by non-state companies. Because it very obviously distorts competition.

Isn’t there also just a common law principle that taxation has to be revenue generating?
It should never be used as a political tool in itself in direct contravention of what is otherwise a social good.
This case is really important.

I can only speak for London day schools, but a huge proportion of parents are barristers, human rights lawyers and solicitors, roughly 50% of parents per class at our school. Would imagine these people will be happily working pro bono to try and deliver a favourable outcome for schools we all hold dearly. Lawyers prepared to forgo their fees is a very dangerous force to be reckoned with. I do not believe this matter is concluded, as other posters have implied. Our school will not be able to provide clarity on the VAT until the challenge goes to high court, which makes it seem unrealistic that laws could be redrafted and approved in time to start charging VAT on January 2025 invoices.

From the government notes
“The clause also creates an exception of board and lodging which is deemed to be closely related to the supply of education provided by a private school, resulting in these services also
becoming taxable. This exception applies to these types of services if they are provided by the private school themselves or an alternative body. With the exception of board and lodging,
when provided by a private school, all other closely related goods and services provided for direct use of the pupils remain exempt.”

Its ridiculous. Boarding schools charge different fees for day and boarding. It’s easy to see what the boarding element is. I cannot see what justification there is for taxing private boarding but not state boarding. Whichever sector used, parents are choosing to pay for it.

We now have the situation where state boarding schools are advertising on Facebook that their fees are VAT free. Screenshot from Facebook attached. They are charging £16,500 a year. So we now have a situation where a parent can pay £16,500 for state boarding and avoid VAT, whilst using state resources in a taxpayer funded school. These taxpayer funded schools appear to have enough of a budget for Facebook marketing.

It’s also ridiculous that private school parents will have to pay VAT on meals and on school trips. My DC2’s private school uses the same catering company as many state schools. There is no justification for one to incur VAT and not the other. My DC1’s state school have trips to some of the same places as DC2’s private school (and by the same I mean the actual same accommodation). Why would one attract VAT and not the other? It’s nonsense.

I would like to know who put together the draft legislation. Anyone know?

The government notes say this

“With the exception of board and lodging, when provided by a private school, all other closely related goods and services provided for direct use of the pupils remain exempt.”

I’m hoping this means trips and meals will be exempt. Trips are fairly straightforward as they’re billed as an extra. I don’t know what will happen about meals though. Our overall yearly fee includes lunches. It’s not broken down into a separate cost. I cannot see how anyone can possibly think that it’s okay to tax one set of parents, but not others, on exactly the same items.

www.gov.uk/government/organisations/office-of-the-parliamentary-counsel/about

Thanks - they need to recruit some more ex magic circle.

It won’t happen. Our school haven’t announced anything ref updated fees yet. I think they are waiting patiently for it all to implode.
The Labour Party of today are a hopeless mess.

There is no incentive to comment and help them out on the inconsistencies!

I am afraid all- the black hole means there is no external legal budget available..,, it’s all the Tories fault. They swallowed it!

“It won’t happen. Our school haven’t announced anything ref updated fees yet. I think they are waiting patiently for it all to implode.
The Labour Party of today are a hopeless mess.“

@TealTraybake - the trouble is that the uncertainty is leading to small schools going bust, teachers and staff losing their jobs, vulnerable SEN children being traumatised and displaced, some parents remortgaging, moving house etc and having sleepless nights.

@Araminta1003 I know. It’s unforgivable of the Labour Party to do this to them. As it is for them to retract the WFA from pensioners in need. As it is for them to remove fundamental women’s rights.

They make me feel physically sick. The tories never pretend, they are who they say they are support them or not. This LP are a bunch of damaging incompetent liars.

Exactly this. Even if the policy is reversed (perhaps unlikely), a lot of the damage is already done. Children have been uprooted, schools have tried to cut costs which has affected staff, and parents have had sleepless nights. All for a policy which is likely to end up costing the taxpayer money anyway. It’s like the winter fuel payment. That could end up costing the taxpayer money, and yet they are ploughing ahead with it. If they really wanted to raise tax, they’d raise taxes on the majority of the population (basic rate income tax, VAT etc). That would raise a meaningful amount. Instead they are messing around with policies which affect children and the elderly. It’s spiteful and pointless.

I find this point most amusing of all - it equates to saying that 93% of parents are stupid/lazy/not interested and it's only bright and engaged 7% can make a difference🙄

I don't think a few private school parents are going to make a significant difference to state education. I do think that the money raised from the VAT will. I see no reason, despite the Jesuitical wriggling of some, that the money will not be raised.

@CurlewKate - I have a proposition. Let’s IQ test all kids including yours and then raise a tax on their parents for being too clever. IT’S NOT FAIR!

I am happy to pay for mine, are you?

Yep! It's so dismissive of state svhool parents, which is bizarre!

Not sure what they think PS parents are going to do exactly?!

I recall I asked you this previously.

Please can you break out the numbers in support of your assertion.

Lets get into the weeds.

Yep! It's so dismissive of state svhool parents, which is bizarre!

I agree but it comes up several times in practically every thread about private v state schools.
Equally bizarrely the supporters of state schools don’t seem to object to this patronising attitude in which these rich parents will magically turn the schools round as all the other parents have done nothing but sit on their arses.

Also, there are endless criticisms of private school parents being snooty and entitled with equally entitled spoilt children so why do they want these sort of parents at the school?