Luckygirl3
MartavTaurus
Luckygirl3
ronib
Stopped middle income families from accessing private education? No problem for the wealthy?
No .... he did what was long overdue and stopped the lie that private schools are charities and therefore not liable for VAT. Someone had to do it sometime ... it could not go on unchallenged.
I have nothing against private schools as such, but to pretend they are charities is simply wrong.
Members of my family have been affected by this. They recognise that it had to be done and have bitten the bullet and paid up.
There is NO link whatsoever between VAT and charitable status of independent schools. That's a complete misconception.
There is - 20% VAT is now applied to private schools because they now have the same status in that regard as all other businesses. Up to now they have been sheltered by charitable status. They are businesses pure and simple.
Here's how it works .......
As charities, the schools are exempt from paying corporation tax, and the 70% of independent schools that were previously registered charities are still very much registered charities. The reason they're entitled to Charitable Status is because education is deemed to be charitable under common law dating back to Tudor times.
It is not the schools paying the VAT anyway, it's the parents, and that now applies to all independent schools