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Politics

VAT on preschool year?

5 replies

PonderingVAT · 26/05/2024 21:59

I'm just wondering something very specific about Labour's VAT on private school policy and how it will work. DD1 goes to a preschool attached to a private primary: it's essentially part of the school. Will Labour's policy mean that when DD2 starts there next year, VAT will be charged on preschool? If so, how will private nurseries be exempt as it is Early Years education?

Or will VAT only start at reception year?

OP posts:
KnickerlessParsons · 26/05/2024 22:35

No one knows yet. Probably not even Labour. TBH, I doubt they'll implement VAT on school fees at all.

Purplestorm83 · 29/05/2024 23:17

They might exempt nurseries that are eligible to offer the funded hours, most nurseries attached to private schools can’t offer them as they are selective. That would be the easiest way (if the policy ever comes to fruition).

PonderingVAT · 01/06/2024 09:23

Purplestorm83 · 29/05/2024 23:17

They might exempt nurseries that are eligible to offer the funded hours, most nurseries attached to private schools can’t offer them as they are selective. That would be the easiest way (if the policy ever comes to fruition).

Our preschool offers the 15 hours funded, but not the 30 - it's not selective though. Tbh, I've never understood how schools can be selective at 3 or 4. Preschool at the private school with wrap around works out cheaper than to have kept DC in her private nursery. Obviously this would change with up to 20% extra.

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Taciturn · 01/06/2024 09:29

We are all waiting on Labour's manifesto. Ut was a rabble raiser, but as someone up thread has said - I doubt that VAT on school fees will feature. They are already back-peddling with "not next academic year" in interviews.

It's not about parents moving their children out, it will be about fewer children applying in future and having to find school places for them. That and VAT being recoverable for four years before registration. Once they have cranked the numbers, they will establish that its a net cost not benefit to the Treasury, and the policy will be dropped.

BloodyHellKenAgain · 01/06/2024 16:43

Taciturn · 01/06/2024 09:29

We are all waiting on Labour's manifesto. Ut was a rabble raiser, but as someone up thread has said - I doubt that VAT on school fees will feature. They are already back-peddling with "not next academic year" in interviews.

It's not about parents moving their children out, it will be about fewer children applying in future and having to find school places for them. That and VAT being recoverable for four years before registration. Once they have cranked the numbers, they will establish that its a net cost not benefit to the Treasury, and the policy will be dropped.

Thus back peddle would not surprise me in the least.

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