VAT on school fees anybody else worried?

[helmethead]

20% increase on school fees could happen on Tuesday - I presume failing independent schools could then become free schools? Only raise £100m though a drop in the ocean of debt.

First I've heard of VAT on school fees. Is there an article?

Or is this just speculation?

Crazy to push more people into the state system when public sector funding is being decreased.

Agree with Marsha - I suspect it would be very unlikely to happen.

If VAT doesn't go up to 20% i'll be very shocked.
Either find the extra 2.5% or send your kids to a state school likethe rest of us have to. Don't go looking for tax evasion ideas on here.

Get a grip, honestly

I think an increase from 0% to 20% is not slight. If it did happen a large influx of private kids into the state system "taking all those reception/secondary school places" may impact everybody. I'm not convinced its unlikely. Although it is an exemption that is little known at the moment.

Lizcat I don't think the tax man is that daft.

There isn't any VAT on school fees.

So it's not a rise of 2.5%.

HAHAHAHAHAHAHAHHA
id LOVE that to happen

This is an old chestnut as has been suggested by various people before. I think it would actually be quite hard to legislate for given the charitable status of some private schools(I know this is controversial but vat rules for charities are different) and how you would legislate for this and not open up all sorts of challenges - not least where it would leave vat on top up fees.

The reason there's no VAT on school fees is because most private schools are registered charities.

The budget is legally incapable of slamming VAT on school fees come Tuesday. Sorry if that disappoints a lot of you.

If the budget changed schools from charitable status to businesses, like they actually are that would be AWESOME

QualityTime and iCooed, why would it actually please you? What difference would it make to you?

There were stories that labour were considering charging VAT on school fees a couple of years ago. I'd be surprised (but pleased) if the coalition government did it.

Notwithstanding any technicalities re. the charitable status of private schools and VAT, I would like to see VAT on private education. IMO, private education is a luxury (which very few can afford) and VAT should be payable on it, as it is for most other goods and services.

God I hope so!if you can't afford it you can't afford it.

Message withdrawn

Fayrazzled I am pretty sure there has been a crackdown on charitable status for private schools - bathtime for dd here now but will see If can find a link.

I didn't mean it that way. I was just trying to say that most people don't care if school fees go up: it is a choice parents make that has a viable, and generally acceptable, option. Having to transfer to state school wouldn't be the end of the world for anyone; in fact, many state schools would benefit from an influx of children previously creamed off by selective private schools.

I'm surprised that your son couldn't get help in the classroom if he needed it. I have full time help for a child with ASD in my class.

Rollacosta you obviously don't exist in an area where demand for good primary school places outstrips supply - moving house to be next to the school would cost £100k+ or where there is poor secondary school choices.

I think its a bit naive to think that all children with ASD throughout the country will get the help your child gets.

Rather depends on the state school, though, doesn't it?

You miss my point helmethead.

If children had to leave their selective private schools and, instead, attended the local sink school, the sink school would improve due to the influx of more able pupils. Teaching at both establishments would most likely be on a par.

I guess I'm just dreaming of Utopia.

I was surprised about the ASD because my county is poor with SEN provision, being a leafy and expensive area.

Where's the problem here?
If the school hs charitable status VAT isn' charged, not can it be reclaimed, as a business can.
If it doesn't have charitable status, it will charge VAT and then can reclaim VAT, so minimal difference if it goes up 2.5%.

RC - naive view - logical fallacy.
(BTW - why do you assume the children deserting fee paying schools are 'more able'? )
Anyway, unlikely that childen would leave fee paying schools and go to local sink. Might mean more pressure on local high achieving schools, as now.
Even supposing there was an influx of these inevitably 'more able'children, and the school as a result appeared 'better', why would this be a good thing? Surely only cosmetic, as the teaching would be not be any better, indeed, might encourage those teachers who hadn't been achieving much before to bother even less if their poor performance is masked by 'more able' children achieving acceptable results for the school with minimal input from teachers. How does this benefit ANY of the pupils?

As has already been said, it's not as simple as just putting vat on school fees. To do that, you would have to abolish the registered charity status of independent schools.

But that is a bonus IMO, for the following reasons:

1. It means that independent schools can reclaim their input VAT. Net increase in school fees would be unlikely to be more than 2%.

1. Indpendent schools would no longer have to offer bursaries or scholarships for the children of impoverished parents, thereby reducing fees

1. Independent schools would no longer have to open their facilities to the hoi polloi

1. UQD would be deprived of ranting opportunities on MN

I make this a win-win-win-win for the parents of independently educated school children

Many private schools find it difficult to meet the demands put upon them by the charities commission. I think Vicky Tuck, the head of Cheltenham Ladies college, sited this as one her reasons for resigning. Getting rid of their charitable status would be well received by many public schools.

Regardless of whether or not the school is charitable, there is no VAT on school (or for that matter university) fees due to a European directive which dictates that certain essential supplies are VAT exempt. The UK Budget cannot overrule this.

Oh that's interesting LM, I didn't know that (know nothing about indirect tax).