EHCP and independent school - VAT?

[OphelieRose]

DS has an EHCP and is about to start year 7 in an independent secondary. We came to a deal with the LA whereby we pay the fees but they pay the top up for the SEN provision. (They argued that his needs could be met by a mainstream state school, we disagreed, but couldn’t face the uncertainty or a long legal battle and opted to come to a deal.)

My understanding is that VAT will be charged on top of our fees because the LA is not paying all the fees. Is that correct? Pre-election, Labour seemed to be saying that EHCPs would be protected from VAT, but they seem to have gone back on their word on that and limited the exemption.

It appears you will have VAT added.

If that would be a problem for you, you should request an early review in the hope (the LA doesn’t have to agree to an early review) of getting the right of appeal. Since LAs are tightening their belts, you may want to consider this anyway because they don’t have to fund the special educational provision now.

I may be wrong but from what I remember only private special schools would be VAT exempt.

Thank you. Can I check what you mean by “they don’t have to fund the special educational provision now”?

I was wanting to check my understanding is correct but really don’t have the appetite to open up the EHCP now because of all we’ve been through already.

LAs don’t have to come to agreements whereby parents pay the fees and the LA funds the special educational provision.

If the school is named in section I, the LA is responsible for the fees and SEP. If it isn’t/parents come to an agreement whereby parents fund the fees and LAs fund the SEP, the LA can say they think, e.g. a state MS can meet needs and you are making suitable alternative arrangements therefore they are not responsible for the funding.

Thank you, I’m aware of that. It looks like I misunderstood your post I think as I thought you were saying that the position has changed in this regard - but the LAs have been tightening their belts for a while so this is not new.

It’s not an option for us to appeal / request an early review at this stage. We will just have to accept the higher fees - difficult but not impossible for us, but frustrating given we had carefully planned and saved on the understanding that EHCPs would be protected.

Thanks for the response.

Belt tightening isn’t new, but it is becoming more prevalent and more severe. Even more so if you are in a safety valve area. Some LAs who used to come to such arrangements are now not doing so as often as they used to.

Of course it is your choice to not request an early review, but everyone has the option of doing so.