Oh Dear: This is going to be interesting vat on private school fees

[Mordac]

I don't have a massive problem with the idea in principle, but in practice...if private schools have to start charging parents VAT, then presumably they would then be able to begin reclaiming VAT on all of their costs (which I assume as they supply exempt services currently they cannot). Now I have no idea what proportion of a private school's turnover is spent on VATable costs but I doubt it's insignificant - on this basis do the sums actually add up?

They have to be VAT registered, and they claim VAT relief - they have to prove to their suppliers that they qualify, and the suppliers don't charge VAT - or something a bit like that. Perhaps someone can ask their accountant.

[Uncle Albert]

Right... So all primary school kids get free meals. So my kids (along with many others) who take in home made lunches which cost the tax payer nothing will start to become a cost.

Then add the VAT onto private schools many of which are only just surviving and there will be a load of children switching from private to state education.

Great thinking by Comrade Corbyn. He's beginning to look like a Tory undercover agent sent in years ago to destroy the Labour party.

[sasguru]

Great thinking by Comrade Corbyn. He's beginning to look like a Tory undercover agent sent in years ago to destroy the Labour party.

He should post on CUK. He'll fit right in with the cretins.
Maybe he does?

GB9? is that you Jeremy?

[barrydidit]

I don't have a massive problem with the idea in principle, but in practice...if private schools have to start charging parents VAT, then presumably they would then be able to begin reclaiming VAT on all of their costs (which I assume as they supply exempt services currently they cannot). Now I have no idea what proportion of a private school's turnover is spent on VATable costs but I doubt it's insignificant - on this basis do the sums actually add up?

I did wonder about that too. Then I remembered that a state school spends ~80% of their budget on salaries, assumed that would be the same (private school teachers aren't contractors are they?) for these guys and so it would actually raise money.

[AtW]

Why isn't there VAT on school fees anyway?

Free school meals for all doesn't sound like a terrible policy.

They are not free though, if somebody ELSE pays for them?

[milanbenes]

I did wonder about that too. Then I remembered that a state school spends ~80% of their budget on salaries, assumed that would be the same (private school teachers aren't contractors are they?) for these guys and so it would actually raise money.

not sure about that

I have noticed, that my old comprehensive, let's call it, "Comprehensive School" is now.... dah dah dah....

a limited company, called, "Comprehensive School Ltd",

and even better,

a number of the teachers, and I don't mean one or two, are directors

it's all clearly visible on the beta.companieshouse website


one has to wonder, if the teachers who are directors are doing anything clever with wages and dividends

Milan.

[barrydidit]

not sure about that

I have noticed, that my old comprehensive, let's call it, "Comprehensive School" is now.... dah dah dah....

a limited company, called, "Comprehensive School Ltd",

and even better,

a number of the teachers, and I don't mean one or two, are directors

it's all clearly visible on the beta.companieshouse website


one has to wonder, if the teachers who are directors are doing anything clever with wages and dividends

Milan.

Nah, my ex is a teacher. I'd have heard about it if there was a sniff of this kind of thing going on. Most likely your old school is now an academy. They'll still employ the majority of the teaching staff but maybe a couple of them are directors or they have external directors who don't have teaching responsibilities.

[AtW]

How many of those few who can afford private schools now voted for Brexit? Probably not many, so might as well clobber them with taxes.

Yours,

Theresa

[AtW]

Why isn't there VAT on school fees anyway?

Schools registered as charities?

[MrMarkyMark]

Nah, my ex is a teacher. I'd have heard about it if there was a sniff of this kind of thing going on. Most likely your old school is now an academy. They'll still employ the majority of the teaching staff but maybe a couple of them are directors or they have external directors who don't have teaching responsibilities.

Bet you didn't mind detention