For All Those Just About Managing To Pay For A Private Education.....

[ToraToraTora]

https://news.sky.com/story/private-school-parents-facing-higher-fees-from-today-as-vat-policy-kicks-in-13282122

Happy new year from Labour.

[Untitled]

happy new year peter. big kiss! X

[dave50]

What about the parents with money who can afford to buy a house in an affluent area which they know  they will then have access to one of the few outstanding state schools? Are they to be punished for using their money to give their kids the best education? Many labour mp's do exactly this so they can brag that their kids going to state schools? 

[ToraToraTora]

PP: "No sweetie, THEY dont pay VAT the school does. " - gawd elp us! VAT is paid by the end consumer, the parents will get charged it, added to the fee, geddit?

[naomi24]

He's confused.

[youngmafbog]

The scholl, or any other business collects VAT from the purchaser on behalf of HMRC.  Anything(almost) bought in the course of their business is deductable meaning it is onlty ever the end user who pays.  Quite simple really.

[youngmafbog]

//Is 'hate and envy' to be done to death here today?//

Cant be said enough because the current Government are displaying it by the day.

This is just pure spite, it wont yield much income, if any, when all things are taken into account.  If it wasnt pure spite any change would have been implemented at and of year and also done in a gradual way, say 5% a year.  So no, I wont stop this vile Government needs calling out.

The stupid think is, that labour seem to have missed is that the richest elites will be able to afford it but it will be the people down the bottom of the ladder struggling to give their kids the best start in life (and going without usually already) who will be hit. i.e. working people who they claimmwont be hit by taxes.

 

[youngmafbog]

//

Eton is £63000 a year so I am sure that the parents can find the extra

Rishi at Winchester - was £43 000//

Another totally ignorant statement from someone who fails to realise that the majority of Indendant schools are not like this.

Stop mixing up Public schools (for the rich) with Independant/private schools. schools; educate yourself a bit.

[THECORBYLOON]

VAT is now payable on school fees but that does not mean the increase need be passed on to the consumer.

The school could choose not to pass any of it on or to pass only a lower amount to the consumers.

I've seen items being advertized in sales as being "VAT free", meaning a £120 item is on offer at £100 but that lower figure would include VAT still.

[ToraToraTora]

"Quite simple really." - not the only thing!

[Ellipsis]

> any change would have been implemented at end of year and also done in a gradual way

I agree, that's how they should have done it.

[Old_Geezer]

You will find that not every school has raised their cost the same percentage as the VAT percentage.

[New Judge]

“Schools do pay extra taxes because of this change. Tax they should always have been paying.”

Perhaps you could explain how that is, OG. (I’m talking only about the imposition of VAT on fees, not the other proposals to come in later such as the changes to the business rates relief awarded to those schools with charitable status).

“The school could choose not to pass any of it on or to pass only a lower amount to the consumers.”

“You will find that not every school has raised their cost the same percentage as the VAT percentage.”

No they don’t have to. However, I read a day or two ago that one in five have already decided to impose to full amount and many more are still to decide. I wouldn’t be surprised if most of them do impose the full 20%. Whilst it’s true that they will now be better off as far as VAT is concerned (because they can reclaim the VAT they pay to their suppliers) as I mentioned above, the 80% business rate reduction enjoyed by those of charitable status (about 50% of private schools) is to be removed.

The more I read about this the more it is obvious that these measures have not been thought through. Whilst it’s true that only around 7% of pupils attend private schools nationwide, the distribution throughout the country is nowhere near uniform. In Surrey one in five children attend private schools and it estimated that around 2,300 children will be making the switch into the State sector. Surrey is already struggling for places in their schools:

 https://bmmagazine.co.uk/news/surrey-runs-out-of-state-school-places-for-private-pupils-as-vat-raid-bites/

[Old_Geezer]

They are paying the VAT. Theoretically they and the government may claim they are just passing it on, but since the service supplier can choose not to raise their charges to the customer, in practice the customer still just pays the service supplier, the supplier then pays the government in turn.

[Peter Pedant]

Peter Pedant was struggling with the notion that parents of children in state schools don't pay  

yes yes sweetie, I had noticed parents at state school dont pay,  and dont wander around saying "Oh Oh I dont want to pay VAT to the school"

oh they wander around, complaining about VAT ( it is a indirect tax by the way) on other items and services wh. er the majority of AB struggle with. New Years Day + 1 on AB

[Peter Pedant]

They are paying the VAT. Theoretically they and the government may claim they are just passing it on, but since the service supplier can choose not to raise their charges to the customer,

that is an exact way of describing a VAT chain

A sells to B sells C sells to D - ABC can offset their VAT and D cant and has to pay. It was actually designed to do that. So it is not four lots of VAT on the chain of transactions, it is on

phew someone knows

[Peter Pedant]

in practice the customer still just pays the service supplier, the supplier then pays the government in turn.

I am afraid that the majority of AB will struggle with that one !

[Deskdiary]

This cynical punishment of parents, some of whom will not be rich, has 100% been driven purely by ideology.

[Ellipsis]

All politics is ideology.

[New Judge]

“They [the schools] are paying the VAT.”

Of course they are not. 

If the school decides to “swallow” the VAT, the fees paid by the parents still include VAT. One sixth of the total fee paid must be handed over to the government. That sum must be shown separately on any invoices. All the school is doing is acting as a tax collector and passing one sixth of the money it charges to the government. 

Vat is a ridiculous taxation scheme but it has one principle element that cannot be denied – it is only the end user (i.e. one who is not registered for VAT or who is but who pays for an item where VAT is not recoverable) who pays it.

Everybody else further up the food chain reclaims any VAT they have paid in the course of their business.
 

[bednobs]

Wasn't this policy in place BEFORE labour were elected? Yet they were still elected.