Mr Kobayashi
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Vat on Independent school fees?
- Thread starter Worsleyweb
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roubaixtuesday
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I think perhaps you are being less than complete with this story.
It turns out this fall is just 1.7%, and actually *less* than the drop in state school rolls this year!
Private schools say drop in enrolments mainly due to impending VAT on fees
Survey by Independent Schools Council finds UK pupil numbers down 1.7% compared with 2023
www.theguardian.com
The £80 million quoted as costing to educate those 10,000 is tiny compared to the estimated tax take of over £1.5bn, and less than the estimated drop in advance.
Removing tax exemptions from private schools likely to have little effect on numbers in the private sector, raising £1.3–1.5 billion in net terms | Institute for Fiscal Studies
Labour’s proposals to remove tax exemptions on private schools are likely to raise an extra £1.3-1.5 billion.
stonerblue
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P
P
PPT
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The Times yesterday.
west didsblue
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mosssideblue
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roubaixtuesday
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It is true, per post above.
It's just utterly misleading - the numbers are tiny, and actually less than was predicted.
stonerblue
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Wh should a private business making plentee of profit abroad and then dodging the tax be given vat exemption?
arbabarshad
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Maybe it isn’t just the £80m. Because it’s not the only impact.I think perhaps you are being less than complete with this story.
It turns out this fall is just 1.7%, and actually *less* than the drop in state school rolls this year!
Private schools say drop in enrolments mainly due to impending VAT on fees
Survey by Independent Schools Council finds UK pupil numbers down 1.7% compared with 2023
The £80 million quoted as costing to educate those 10,000 is tiny compared to the estimated tax take of over £1.5bn, and less than the estimated drop in advance.
Removing tax exemptions from private schools likely to have little effect on numbers in the private sector, raising £1.3–1.5 billion in net terms | Institute for Fiscal Studies
Labour’s proposals to remove tax exemptions on private schools are likely to raise an extra £1.3-1.5 billion.ifs.org.uk
- School closures that employ teachers and support staff and otherwise contribute to economy
- redundancies resulting in lost tax and national insurance revenue (£1m a year for every 200 staff made redundant approx)
- for every £1m a private school takes in fees, it spends approx £300k on overheads. 10,000 students moving out of private schools means approx £45m less contributed to the economy
- local councils losing out on business rates income from the closing school. For 10,000 students - approx lost income of £10m.
- cost to hmrc to employ new people to facilitate the registration and compliance of vat
There will be many other businesses who supply goods and services to independent schools that will suffer as well. And vat reclaims on Capital spend over £250k in the past ten years will also be reducing the actual intake of tax over the next ten years.
There will be more issues to consider as well but the tax collection from this policy will be not close to the amounts thrown around. So it’ll end up being more of a symbolic policy.