VAT on education?

[motorbiking]

So based on your invalid claim that many top earners will emigrate being false:
- People pay the VAT on private education
- little change in LA school population.

Job done.

Hilarious.. oh wait you’re serious.

 

[carmanmemoranda]

Or if they decide to offer discounts to sponsors or one of many other options.

So it's not as bad as it sounds for many.

Do you think these loopholes are good for the UK tax take ?

 

[mitch66]

He is upsetting Tory voters, so he is obviously heading in the correct direction

He's also upsetting ex tory voters who believed he would be different. Still, if him upsetting people makes you think he's on the right path, you'll be very happy with his progress.

 

[motorbiking]

So it's not as bad as it sounds for many.

Do you think these loopholes are good for the UK tax take ?

If people are encouraged to privately educate their kids reducing the burden on the tax payer. It’s good. If the new government dips its hand in to people’s pockets too much they will explore alternatives, then it’s a waste of everyone’s time. Except the tax and legal advisors who always get their fee.

 

[carmanmemoranda]

If people are encouraged to privately educate their kids reducing the burden on the tax payer. It’s good.

Id agree with that if tax was paid.

If the new government dips its hand in to people’s pockets too much they will explore alternatives, then it’s a waste of everyone’s time. Except the tax and legal advisors who always get their fee.

That's what the issue is with taxes. Too many people get to avoid them. Notice who ?

 

[IT Minion]

If people are encouraged to privately educate their kids reducing the burden on the tax payer. It’s good. If the new government dips its hand in to people’s pockets too much they will explore alternatives, then it’s a waste of everyone’s time. Except the tax and legal advisors who always get their fee.

... but without any modeling we have no idea at what percentage it goes from net positive to negative for the exchequer.

If no one drops out then it's quids in for the treasury. If everyone dropped out then it's expensive. Does anyone know where the crossover is?

 

[IT Minion]

I've gone and had a look for a deeper analysis.

Tax, private school fees and state school spending | Institute for Fiscal Studies

This report compares private school fees and state school spending. It also examines Labour’s proposals to remove tax exemptions from private schools.

ifs.org.uk

Mangling their numbers heavily I think they'd need to drop by a at least a third before it would be a loss making exercise. It's obviously not that simple as Eton fees are obscene and they'll always be fully booked. The cheaper end is more at risk.

But that ignores that the spare income would be spent on other things, which would then be subject to VAT.

 

[motorbiking]

It’s easy enough for you to calculate the potential vat per child in private fees based on avg fees and it’s easier enough to calculate the cost per child for state education.

Approx £1,100 per state education.
3k VAT avg per private education.

The reality is the peel off will be at the lower end of the market.

Given many schools target international students. I can’t see the VAT raising much, with a bit of basic management from the schools

A model similar to that used by the national trust would work fine.

 

[motorbiking]

Id agree with that if tax was paid.

That's what the issue is with taxes. Too many people get to avoid them. Notice who ?

Usually those work cash in hand or can do discount for cash.

 

[JohnD]

I wonder how many jobbing handymen and cleaners save enough in unpaid tax to set up in the BVI.

Necker Island (British Virgin Islands) - Wikipedia

en.wikipedia.org

 

[Notch7]

Usually those work cash in hand or can do discount for cash.

Multi millionaires and billionaires and massive corporations avoid the most tax

How much tax has Amazon and Google paid?

 

[carmanmemoranda]

Usually those work cash in hand or can do discount for cash.

Try a serious answer next time

 

[Notch7]

Try a serious answer next time

It’s the Tory grift

Always divert blame onto foreigners, benefit claimants, poor people…..whilst simultaneously creating policies which favour the top 1%

 

[IT Minion]

It’s easy enough for you to calculate the potential vat per child in private fees based on avg fees and it’s easier enough to calculate the cost per child for state education.

Approx £1,100 per state education.
3k VAT avg per private education.

The reality is the peel off will be at the lower end of the market.

Given many schools target international students. I can’t see the VAT raising much, with a bit of basic management from the schools

A model similar to that used by the national trust would work fine.

If they're targeting international students then state education numbers don't count and the buyers are less price sensitive anyway.