"Panic For Many Parents Who Aren't Particularly Wealthy" | Private School VAT Explained

Keir Starmer’s Labour Party has pledged to introduce VAT on private school tuition fees to raise funds to recruit more state school teachers. However, these plans have come under fire over fears class sizes in state schools will increase.
Political commentator Theo Usherwood, thinks this policy could be introduced as early as September following a Labour election victory, adding “there is some confusion about it."
Mike Graham says: "We've spoke to many, many people, a lot of mothers actually, who rang in to the show...to say that they are not wealthy people."
#vat #privateschool #education #labour #wealthy #school #classsize
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[@cecilialam6856]

That’s so disgraceful, I’m sure all the parents are already paid their taxes Vat on education is completely wrong , the students from private school will come out contributing to our society Why this government is like this

[@DavidGetling]

Putting VAT on private schools is an act of unmitigated jealousy and envy. If Starmer wasn't so blinded by class hatred he would consider how much more us taxpayers would have to fork out to educate all those in private schools if they swapped to state education. But then Labour has always had a levelling down policy. As has been pointed out so often, many parents aren't wealthy. They just bust a gut and make big sacrifices to do the very best they can for their children.

[@krishnagondhea7428]

Latter paragraph sounds like me. I think I’ll be down to less than £100 each month once this VAT kicks in. It’s really nasty

[@DS76204]

@@krishnagondhea7428I have 2 in private school, will prob add another 300 to my monthly fees. I'm not driving a flash car, we don't go flash holidays, just doing the best I can for them. Take comfort from the fact that a civil servant will probably take Starmer to one side and point oit they can't actually afford to flood the state sector and that his plan in reality will allow one extra teacher per school if he's lucky, whilst at same time increasing class sizes

[@krishnagondhea7428]

@@DS76204 I hope your right. I’m the same. No flash car or flash holidays. We’ve been getting letters from the school saying that their invoice may change depending on the outcome of changes in the legislation and the option to pay the years fees upfront. But how many people are in a position to do that! Not many as most of us are working professionals who have to save for each term

[@ianHolmes-i5g]

What utter nonsense if they cannot afford it they should send their little darlings to state school like most people

[@1947Keef]

Education needs to be raised to the highest level, not dumbed down to the lowest because it’s considered elitist, we also need to nurture talent when we find it. Not all students can be talented.

[@sasserine]

Since when did entry into a fee-paying school depend on intelligence or talent?

[@Chilligaljas]

There will be a price out anyways. Just face this fact.

[@johnbobson1557]

Most of those it will affect are the caring parents & professionals the nation needs. The very rich of course will be unaffected. Indian-British parents will board their children to the Sub-Continent as boarders, and the Chinese will just buy the schools many already have campuses in China anyway, then move them lock, stock & teaching staff. Singapore is outstanding though a tad more expensive. Those doctors, dentists, engineers etc on middle salaries will just leave the UK and educate their children overseas where the best educational systems now are. I did so with my wife so that was two dentists the nation lost. It costs me approx £8,000/year for a first class education for my daughter in the Far East. It's not just the academics, they learn manners & discipline.

[@jonlebono2147]

If VAT exemption is removed on education, then it should be removed for all charities. The smaller ones will be protected by the threshold and the others can find savings too.

[@Gary-le7dz]

Thick as shite …. Private schools are NOT charities unless your saying all education is a charity

[@sasserine]

The VAT should be removed for schools, because they aren't charities. It isn't an argument against VAT exemption for charities. It's a crackdown on businesses fraudulently claiming to be charities.

[@jonlebono2147]

@@sasserine Almost every charity in the UK is run as a business including payroll , salaries, and employees. In many cases most of the donations are going towards paying huge salaries to directors and unrelated activities.

[@AmSam-tp4ck]

@@jonlebono2147 Sadly true. At least the benefits that come with the mask of 'charity' are being taken from fee paying schools. Hopefully this is the first of other dominoes to fall.

[@tenniskinsella7768]

Yes they dont like people getting on

[@rojavida]

I’ve just lost my only small piece of income due to this policy. Thanks Labour!

[@kiwifidgets8951]

Hi I have put my daughter into state school From private , the state will now have to pay £8000 a year and I will save £20000 a year , please people keep paying your Taxes

[@erichalfbee503]

Forget the politics of envy, the numbers dont add up : 1. If these schools charge VAT then that will also mean that they can reclaim VAT on what they buy. None of Labours numbers show the net VAT intake, only gross. 2. For every child that now has to go to state school instead of private, these is a cost of £7000+ to the state. Again, this figure is ignored. 3. For every child that now has to go to state school instead of private, the state class sizes go up. I have seen this locally when 3 small independant schools went under. The state schools struggled to take teh numbers but had to. 4. How many foreign children will no longer come to the UK to be schooled? What is the impact to the UK economy of this? This is just the politics of envy. Except the champagne socialists will still be able to send their kids to these schools as many are millionaires.

[@DAVIDPOWELL-sx8kj]

If you know how VAT works you will realise that fees will not have to rise by a straight 20%. This is because Private Schools will now be able to reclaim VAT on their revenue and capital costs, which they couldn't do previously. In some cases in an academic year they may be able to claim more VAT back than they are charging if they are investing in a big capital project. Undoubtedly there will be some parents/children on the threshold that can't attend any longer, but they will return to the superbly run state sector which has thrived under 14 years of Tory Government (not).

[@sasserine]

You can bet they're already claiming input VAT on purchases. Their supply being wrongly zero rated doesn't prevent claims on purchases.

[@Mark-kh1ny]

Our school have already written to the parents confirming there will be a 20% increase if Labour get in. So far and it’s only been a week, ~10 of my daughter’s friends have said their parents will yank them out if it happens. That’s just the ones prepared to admit it in her sphere of 20. Two things will happen. An over stretched state system will come under more pressure. The more parents that leave, the less VAT there will to be recoup, whilst even more would be needed to cope with the extra kids. Fees will probably increase again in response to lost revenue sparking more leaving. It’s a depleting tax source. Poorly thought through TBH.

[@Chilligaljas]

Exactly that. If they truly want to improve state school system, they should encourage people to go private by giving tax relief, saving up resources for state school system, instead of raising tax for private school and thereby pushing these kids back to private school system.

[@amyyan4763]

Aside from VAT added to fees, private schools will also be losing business rate relief. It’s going to be tough for the independent sector.

[@stevenrobertson8329]

Has anyone thought about the impact on the kids?

[@nicolaclark4234]

NO they haven't...

[@richardleach5514]

I hope the rest of Labour's policies are better thought through. The "think tank" has come out with a theory that the savings that parents will make by not being able to afford private fees and sending their kids to state school will be spent creating VAT receipts elsewhere. The monies are more likely spent on higher mortgages (no VAT gain) moving into the catchment areas of the better state schools. Instead of basing a policy on its hatred of schools like Eton, the Labour Party should look at the entire sector, especially those smaller private schools specialising in kids with special needs. Let's have some joined up thinking Mr Starmer please!

[@beefy0978]

Why do private schools simply not become academies and switch from private funding to state funding, keep the same kids (until they at least pass thru).

[@peterloup2302]

And what teachers would propup these schools. The State could not afford to do that.

[@meganstewart9062]

They need to concentrate on sen schools more i think not penalise private schools.

[@whatsmining9917]

It won't make any difference he's just trying to make a name for himself

[@Just..........33]

In the back ground mr corbyn still running Labour?😊

[@MrNelford]

This is council housing all over again. Labour thought it was unfair only hard working people were awarded council houses so they decided to put all the layabout in them too. The result was that council housing was dragged down, not layabouts pulled up. Same will happen with state schools, the added strain of extra kids will drag state schools down, not pull them up. Want them better? Increase productivity of the nation to gain more taxes passively and stop importing migrants that are only here to consume resources. And no, I am not anti immigration, just anti scrounging immigration

[@DS76204]

If the state sector wasn't over run with the offspring of people who don't care to bring their kids up ready and willing to be educated it would be fine. All this chat of 'normal people'. Lets address the swathes of the population and their kids who care not one jot for the opportunity being afforded them and ruin it for everyone else. Much harder conversation for SIR Keir though eh?

[@songscoops4205]

One big happy classroom... just not for the teacher 😂😂😂

[@GeoffV-k1h]

£30,000 per year -or is it per term? How many people who weren't well off could afford this? Such people shouldn't be receiving handouts or tax breaks..

[@Just..........33]

It not , it's £15000 a year up north and saves public schools £7500 year.

[@jongalloway726]

Imagine paying your taxes once, then paying again for your child’s education needs. But dont worry you can now take your child to the state system to get their needs ignored in a class of 40 students.

[@alicesmith3612]

When I went to school in 1940/50s there were 39 in 0ur class and our teachers were the best, and coped very well with a full class, nothing wrong with having a full class room , we were taught religion history, geography ,arithmetic, mental arithmetic, & ,pt,

[@krishnagondhea7428]

Not everyone who sends kids to private school are rich. Some of us are making big sacrifices.

[@Jamal-Ahmed786]

That's bullshit. Is it fair that despite being a business, they should get charitable tax treatment? It really isn't fair.

[@jongalloway726]

Is it fair that a child with education needs cannot get it at state school and now cannot get it at private schools because everyone misunderstand private schools and think private schools are about elitism?

[@MrNelford]

While we are at it, let’s remove charitable status of mosques. They are a business; a business of oppressing women and free speech.

[@Chilligaljas]

No other countries in this world charge VAT on education

[@Chilligaljas]

Is it fair that the private school parents already give up the state school places and saving up resources for the state school system?

[@sharonjames2041]

😢Socialism for private companies 😢Nah 🤔❤

[@carolynesimpson6070]

If Private School Teachers are made redundant do State schools prefer not to employ them over State School Teachers looking for a job?…..

[@AmSam-tp4ck]

In many cases, yes. State schools must adhere to guidelines that private schools are exempt from, for example, requiring that educators complete courses in pedagogy and hold teaching qualifications / QTS. Private schools often set their own guidelines that are not as rigorous, and as a result teachers from some private schools may not be prepared for the challenges they will face in state (i.e. real) education. That said, a teacher from a private school who holds QTS will be on a level playing field at interview with a state school teacher holding the same qualification.

[@lesleylamy]

Take the charity away , there should be no private schools only grammar schools for the Clever ones ,but have a state curriculum the best can go to grammar school , but many in state school are missed, because they. Quite or shy they do not speak up for themselves .

[@jackiehowse8554]

Scare tactics about class sizes so people are scared and pay VAT

[@TroyaE117]

Rayner? What do you expect?

[@ashleycarolan1955]

I think there should be nuance, those who are in schools for special needs, yes they should get tax exemption because they are making a choice based on the child's needs, however, those who are doing it to get out of pure choice, then yes tax them, because there is no medical reason for them not to be in state school, also taxes should apply to those choosing private schools based on religion

[@tenniskinsella7768]

Strange that what i wzs thinking.starmer will care more about immigrants smd peoe who do t work snd dont wsnt to work will get the council.houses first.

[@ua6765]

Typical scare tactics. Private schoolers will keep their children in private education. No send their children to private school unless they’re rich well beyond the school fees.

[@krishnagondhea7428]

Let me tell you I’m not well above the school fees. Every month I’m putting money away to pay school fees for my child. I have very little left over. It’s a sad sad time if VAT has to be paid on education. Shouldn’t they be seeking to tax the ultra wealthy?

[@Mark-kh1ny]

😂 Classic media fuelled ignorance. Here’s some actual facts for you based on real life: 1. Eton is NOT what private schools are like. Straw hats, posh accents, sports cars, helicopters 😂 90% of independent schools are literally not even close to this. 2. The parents have “normal” professional jobs. From my circle there’s an IT pro, events manager, teacher, blood machine engineer, estate agent, tree surgeon, accountant manager oh and one pilot 3. Most of us literally scrape together on the joint household income. My choice, but I push myself to the limit of my finances every month. There is no slack, I don’t have savings. But my kids come first. 4. In response to a letter the school sent out this week warning of the potential rise, 10 of the 20 kids in my daughter’s class have said their parents will take them out if Labour get in. They’re upset they’re going to leave their friends. They’re just kids. Why would anyone wilfully disrupt their education and life?!? 5. Here’s what will actually happen, from someone actually on the ground. Mass exodus will flood the state system, there will also be less parents to tax, so a depleting tax source. Fees will rise further due to revenue loss, more will leave, rinse and repeat. I’m all for everyone having a good education, but don’t take it out on kids when there are plenty of people in this world taking the mick and not paying their fair share. Ironically, private schools will become exactly what everyone thinks they are now. Schools for the super rich elitists.

[@Mark-kh1ny]

@@krishnagondhea7428completely agree as per my rather long rant

[@jayaitch2194]

@@Mark-kh1ny Well said indeed!

[@TimothyRyan-g2n]

Every other business has to pay vat , just saying .

[@peterloup2302]

But the private schools have Charitable AND in return for this they are expected to provide assistance to the state system by way of teaching in key subjects and sharing their facilities - which THEY DO IN SPADES.

[@mariewalmsley6143]

If they can afford private school they're hardly destitute, what about homeless families.

[@carolewynn9407]

Some parents choose to go without many things and work hard, so they can send their children to private school, now they lose the choice.

[@mariewalmsley6143]

@carolewynn9407. Poor them.

[@carolewynn9407]

@@mariewalmsley6143 So you believe no one should have any choice ? Do you know this also affects scholarships , special schools ?

[@mariewalmsley6143]

@carolewynn9407. They'll still get an education, I think there are more important things like homeless families ,the nhs and the dentist crisis to deal with first. If you don't that's your business. Bye.

[@carolewynn9407]

@@mariewalmsley6143 The money they will supposedly gain from this, is not enough to make any difference, all it is , is vote catching. Lack of dentists is mainly due to how they are reimbursed from the NHS, social housing obviously needs to be addressed, but this scheme will do nothing.

[@chrisspencer6502]

Can’t these people just cancel their Netflix and stop eating avocado toast or

[@Just..........33]

No we need that too😊

[@krishnagondhea7428]

Cost of Netflix + Avacado toast does not = cost of school fees

[@sasserine]

The argument, that discouraging parents from going private will overload state school budgets, is absurd. The amount the government subsidises private school beggars and scroungers is many times what they spend per state school pupil. So reducing the number of welfare spongers in private school actually frees up £millions to spend on state school buildings and staff.

[@hahmed6308]

Poor little dears, they may just have to go to school with the plebs

[@jayaitch2194]

You're not listening to the points being made, the very wealthy won't even notice an additional 20%. The issue is the excellent small schools where many pupils who struggled in large state school classes were taken by parents wanting to give their child the chance of a decent education not one where they fell between the cracks.

[@johnbobson1557]

My daughter has Down syndrome. Do you have any concept of how bad SEND support is in the 3rd world UK?

[@djdoolittle1315]

Porky Mike ❤