Vat on Independent school fees?

[stonerblue]

The argument that if you cannot afford to pay vat, just send the kids to state schools is against the governments argument that it’ll raise tax revenue.

The more kids who go to state schools will result in less tax revenue and more tax burden on state schools and the economy as a whole.

The number of pupils going to private schools who are really rich only make up around 20%.

6-10% are on bursary support
70-75% are sacrificing other things in life to give better education to their kids.

No matter how this policy is dressed up, it is symbolic in nature and ultimately substance.

UK private schools rush to expand overseas as profits soar

Forty schools took in record £29m in 2020-21 from satellites, including in developing countries

www.theguardian.com

 

[Palerider]

The argument that if you cannot afford to pay vat, just send the kids to state schools is against the governments argument that it’ll raise tax revenue.

The more kids who go to state schools will result in less tax revenue and more tax burden on state schools and the economy as a whole.

The number of pupils going to private schools who are really rich only make up around 20%.

6-10% are on bursary support
70-75% are sacrificing other things in life to give better education to their kids.

No matter how this policy is dressed up, it is symbolic in nature and ultimately substance.

I tend to agree. Levelling down is always a lot easier (and seemingly more popular) than levelling up BUT we should really be asking why a private education is better than a state education.

 

[Brewster's millions]

What a complete shambles.

Their manifesto was already a work of fiction, given that they only outlined two notable tax hikes; non doms and putting VAT on private school fees. Now they’ve had to water-down or postpone these because of a fundamental lack of foresight, judgement and preparation.

It’s highly doubtful that either of these policies will raise any money, and so all they’ve done is advertise their incompetence and aggravate concerns across the gilt market about what comes next.

Really very poor.

 

[stonerblue]

In england they dont but they do in other parts of the country.

So your !0.000 pupils figure is wrong then?
Also your assertion that schools will close because they will have to pay business rates seems a little hyperbolic.

 

[mosssideblue]

What a complete shambles.

Their manifesto was already a work of fiction, given that they only outlined two notable tax hikes; non doms and putting VAT on private school fees. Now they’ve had to water-down or postpone these because of a fundamental lack of foresight, judgement and preparation.

It’s highly doubtful that either of these policies will raise any money, and so all they’ve done is advertise their incompetence and aggravate concerns across the gilt market about what comes next.

Really very poor.

Can you provide the details on this?

 

[arbabarshad]

UK private schools rush to expand overseas as profits soar

Forty schools took in record £29m in 2020-21 from satellites, including in developing countries

www.theguardian.com

40 schools out of how many 2600 ?
Back in 2020-21 ?
Before 26% pensions and 11.5% pay rises for teachers last in 2022?

I guess you and others mocking the sources can make a better judgement from the headlines in papers than people from bursar groups at the actual schools themselves.

 

[Brewster's millions]

Can you provide the details on this?

You don’t keep up with the news do you?

 

[stonerblue]

The sources for my numbers are first hand as I work on these numbers as my day job. And some of the numbers you won’t find on SCIS or ISBA or ISC websites.

The schools already rely on those above inflation fee increases to pay for teachers pay increase or pension increases which are usually above inflation. Even then some run on deficit to pay for those pay and pension rises.

70-75% of independent school costs are their staff costs.

If they didn’t increase fees one or two years to absorb vat rises, they’ll end up going down very quickly. Unless the government freezes pay and rises.

https://www.glassdoor.co.uk/Salaries/private-school-teacher-salary-SRCH_KO0,22.htm

 

[stonerblue]

Can you provide the details on this?

Schools are saying they don't have time to put the change in place immediately and the tax man needs to catch up.

 

[arbabarshad]

So your !0.000 pupils figure is wrong then?
Also your assertion that schools will close because they will have to pay business rates seems a little hyperbolic.

In england they will have to now as they didn’t have to before.
10,000 figure is a figure for now before the introduction of vat. This figure would rise to around 60,000 by this time next year if vat is introduced in Jan 2025.