PS VAT - international reaction

[AlbionLass]

France and Germany attack UK plan to levy VAT on international school fees
Proposal to impose value added tax in the Budget risks damaging diplomatic ties, ambassadors say.

France and Germany have hit out at Sir Keir Starmer’s plan to levy value added tax on private school fees, saying the policy risks forcing hundreds of children out of international schools and damaging diplomatic relations with the UK.

I wonder how this will square with wanting to be closer to the EU?

It is breaching human rights.

This absolutely remains to be seen, and it will be a a number of months before any initial ruling.

The entire point of Human Rights is to balance what the government would choose to do, potentially with the support of a majority of the population.

Otherwise it would simply be the county's own normal laws and their implementation through the normal judiciary.

I've always thought that the negatives - such as it costing the taxpayer £1.7 million in legal fees over 12 years to evict a terrorist hate preacher (Abu Qatada) - were the price we pay to ensure human rights for the innocent.

If in fact it only protects those who hate the UK or want to take advantage of it - and not our children - then it's not fit for purpose.

You stated this was a political decision and if people didn’t like it, they should vote differently in the next GE (this presupposes that parties keep their manifesto pledges but that’s an aside).

I simply responded to that before you revealed that you were a ‘lawyer’ for approx twenty years, in order to support your assertion that the ‘legal challenge will not succeed’.

Frankly, I struggle to take any of your points seriously.

@EverythingAllatOnceAllTheTime it is Pythag not Strawberrybubblegum who has been a lawyer for 20 years.

Thanks @SheilaFentiman

Think it was this post @EverythingAllatOnceAllTheTime intended to quote.

Yep.

Is Pythag a litigation lawyer specialising in human rights? Even a tax lawyer with mainly transactional experience is not going to be fully relevant?

IANAL and I consider the claim to be pretty weak, from familiarity with legal matters through work and from general interest reading.

Obviously a specialist in the area will have the most informed opinion, but others can also have informed opinions, based on general principles.

And there are people on the thread (presumably not human rights lawyers) who seem to feel very definitely that it is a breach of human rights. They too are stating a non expert opinion.

Tax lawyers do not want this case to succeed, that is a given.

What makes you say that?

Probably in conveyancing.

Akin to the high street bank cashier calling themselves a banker….

Snooty, much?!

Probably in conveyancing.

Akin to the high street bank cashier calling themselves a banker

But you've just made that up. You may as well say "probably lying and not a lawyer at all". That would be equally pointless. And also impossible for the poster to prove or disprove anyway.

Just accurate.

Why pretend - if not in an attempt to boost your credentials, and therefore your argument.

You have made something up based on nothing and you are now berating Pythag for “pretending”?

Is this performance art??

What?

Is this parody???

https://educationhub.blog.gov.uk/2024/11/01/vat-private-schools-everything-you-need-to-know/

How will this affect pupils with SEND?
How VAT affects private school fees for children with special educational needs and disabilities (SEND) depends on whether they have a local authority funded Education, Health and Care Plan (EHCP) and what it advises.
Where Local Authorities fund pupils’ places in private schools (for instance, because the school is named in the pupil’s Education, Health and Care Plan), Local Authorities will be able to reclaim the VAT they are charged on these pupils’ fees.
However, where parents and guardians choose to send their child with SEND to a private school, VAT will be applied to their fees.
This applies where they have an EHCP, but the local authority has decided that a private school place is not necessary to meet their needs.
We are committed to making sure high-quality education is available for every child and will make sure there is earlier intervention in mainstream schools so that children with less complex needs can get the help they need.

“We’re not expecting these changes to have a significant effect on bursaries across the private school sector in general.”

“Evidence from the IFS shows that raising VAT on private schools will have limited impact on the state school sector.
Over the last few years, the number of pupils enrolled at independent schools has remained largely the same, even when fees have increased by more than inflation.
Because of this, we expect that around 35,000 pupils – less than 0.5% of the pupil population – across the UK will change schools to a state school from private schools.”

And here the truth from a professional body to counter the marketing from Central Government:

“Plans to introduce VAT on private school fees during the current academic year will lead to complications for schools and HMRC, potentially affecting compliance, chartered accountancy body ICAEW has warned.
In a representation to government, the Institute recommended a delay to 1 August 2025, and cautioned that many independent schools will need to register for VAT by 1 January 2025. This will place unnecessary strain on HMRC and fail to give schools enough time to seek professional advice regarding their registration.”

https://www.icaew.com/about-icaew/news/2024-news-releases/icaew-recommends-delay-to-vat-on-private-schools-september-2024

Note the unnecessary STRAIN ON HMRC!

Would it not be funny if HMRC went on strike?

Ok, this is getting pretty weird.

I will leave it there as far as addressing your posts is concerned.

I will hold you to that.

Do civil servants go on strike department by department, or is it more a union by union thing?

VAT registration guidance for PS is up (and has been since 10th October)

https://www.gov.uk/guidance/check-if-you-must-register-for-vat-if-you-receive-private-school-fees#:~:text=of%20these%20changes.-,Who%20must%20register%20for%20VAT,months%20is%20over%20%C2%A390%2C000

https://www.dailymail.co.uk/news/article-14050719/amp/Foreign-Office-begs-private-schools-cut-boarding-costs-diplomats-children-following-Labours-VAT-raid-fees.html

Sounds like British diplomats need some help too. Not just the Germans or French then?

Sounds like HMRC also need help and extra resources.