Vat on Independent school fees?

[Mr Kobayashi]

I’m saying there should be.

Yes, without a doubt. A hybrid school (which it ultimately is) is a pragmatic way of raising educational standards.

Who ultimately pays the fees for the boarders? If they are from eligible military families which a large number are, it will be the Tax payer via the MOD. Seems unnecessary.

 

[metalblue]

I’m saying there should be.

Yes, without a doubt. A hybrid school (which it ultimately is) is a pragmatic way of raising educational standards.

I appreciate you say there should be and that would be “fair”. But there isn’t going to be. These schools are going to be exempt from paying VAT on boarding fees. It would certainly offer a potential to claim uncompetitive practice.

I entirely agree with the last paragraph. A quick search shows there are 30 of these hybrid schools in the UK, it should be something more widely available as offers the best of both worlds.

 

[Alan Harper's Tash]

I appreciate you say there should be and that would be “fair”. But there isn’t going to be. These schools are going to be exempt from paying VAT on boarding fees. It would certainly offer a potential to claim uncompetitive practice.

I entirely agree with the last paragraph. A quick search shows there are 30 of these hybrid schools in the UK, it should be something more widely available as offers the best of both worlds.

Why don’t private schools use the loophole to get round fees for their boarders? 90% boarding fee and 10% main fee.

Won’t help the non-boarders, but would help the others until the loophole is closed?

 

[johnnytapia]

I was merely establishing that for state boarding schools you don’t pay VAT on boarding fees but you do for private boarding school. There is a certain “discrepancy” there and given one of the 3 guiding principles in the legislation is fairness it’s failing that test quite spectacularly.

You hum it, I’ll play it…

 

[johnnytapia]

My son went to state boarding school and absolutely loved it, apart from the first year, which he hated. It definitely helped him hugely academically. He has very fond memories of that place. And because of where it was I got to see him more than I otherwise would. They were totally relaxed about visits. In the weekday evenings, or at weekends. No need to give any notice to the school. You could just rock up.

My girlfriend hates the notion of sending your kids away, and I get that, but no two children are the same and there will be plenty who absolutely love the experience. My lad is living testament to that.

And should there be VAT on the boarding fees? Absolutely there should.

Sounds like prison. Giving notice of visits.

 

[Mr Kobayashi]

Sounds like borstal. Giving notice of visits.

 

[metalblue]

Why don’t private schools use the loophole to get round fees for their boarders? 90% boarding fee and 10% main fee.

Won’t help the non-boarders, but would help the others until the loophole is closed?

There is no loophole to exploit. Private schools will pay VAT on boarding fees as of Jan 2025.

 

[Alan Harper's Tash]

There is no loophole to exploit. Private schools will pay VAT on boarding fees as of Jan 2025.

Fair enough.

 

[metalblue]

Fair enough.

TBF to the government they have thought about a few of the potential loopholes and covered them in the draft legislation. I may not agree with the policy in principle but if it’s going to happen then I do expect it will be robust so credit where credit is due (even if I think it may be open to legal challenges).

 

[Alan Harper's Tash]

TBF to the government they have thought about a few of the potential loopholes and covered them in the draft legislation. I may not agree with the policy in principle but if it’s going to happen then I do expect it will be robust so credit where credit is due (even if I think it may be open to legal challenges).

Agreed. Fairness is paramount.