Thread by @JulianGravatt

1/6. Interesting Labour proposal to change tax rules for private schools and use the £1.7 bil raised in VAT and business rates for young people - to reduce drop out, improve careers advice, work experience etc. Rest of this thread covers the tax issue mirror.co.uk/news/politics/…

2/6. The calculation that £1.6 bil can be raised from VAT on private schools is the figure in @Resfoundation 2020 "Unhealthy finances"report (Page 133). This is the report that made the case for the 3 big tax rises now adopted by the Conservative govt resolutionfoundation.org/publications/u…

3/6. Extending VAT to private education might be quite complicated. A Lewis Carroll tribute band wrote HMRC 701/30. One challenge would be to tax private education in private schools while not accidentally taxing other education involving payment... gov.uk/guidance/vat-o…

4/6....another challenge would be the ingenuity of tax advisors who might find ways to reclassify £40k a year private school fees as something else (accommodation, catering, sport etc). VAT notices 701/45 and 709/3 cover the basics

5/6. Long-term simplification of VAT in education the UK is possibly only achievable through something like the New Zealand Goods & Services tax which (I understand) covers education but at a lower rate.

6/6. Anyway, with everything else going on, it's worth noting how much more is available for those in private education. With private school sixth form fees now hitting £20k/year (page 19, ISC census), AoC's spending review suggestions look modest
feweek.co.uk/spending-revie…