Labour imposing their VAT raid on private schools from January is unreasonable, teaching unions warn
Teaching unions and tax bodies have warned the January start date for Labours VAT on private school fees will cause chaos.
Teaching unions and tax bodies have warned the January start date for Labours VAT on private school fees will cause chaos.
They said making the change so soon - and in the middle of the school year - does not give schools enough time to prepare.
Yesterday, Education Secretary Bridget Phillipson was also accused of being divisive after she posted online an apparent dig at private schools embossed stationary.
Among those criticising the VAT start date is the NASUWT teaching union, which said although it shares Labours vision it wants a more reasonable timeframe.
Others include the ASCL teaching union for heads; the Chartered Institute of Taxation (CIOT); and the Association of Taxation Technicians (ATT).
Leaders of private schools say they are still unable to register for VAT because the plans. (Stock image)
Among those criticising the VAT start date is the NASUWT teaching union. (A woman holds an NASUWT flag during a demonstration)
Yesterday, Education Secretary Bridget Phillipson (pictured) was also accused of being divisive after she posted online an apparent dig at private schools embossed stationary
It is feared the impact of adding VAT to fees at such short notice could cause redundancies, displace pupils and play havoc with schools book-keeping.
Julie Robinson, chief executive of the Independent Schools Council, said: Even those who are in favour of imposing VAT on the independent sector are saying that January is not feasible.
Damian Hinds, Shadow Education Secretary, said on X: Labour want to introduce their education tax part-way through an academic year, having provided no impact assessment on the likely consequences for either private or state sector.
Everyone thinks this is unworkable. The Government need to listen.
However, yesterday the Treasury maintained its position and said: Ending tax breaks on private schools will come into force on 1 January as planned.
Labour announced the date in July, saying the tax will pay for 6,500 extra state school teachers.
In response to the Governments consultation on the issue, the NASUWT said it shares the Governments ambition to break down the barriers to opportunity.
However, it added: We request that a more reasonable timeframe is proposed in order to implement the change fairly and without excessive disruption for teachers, pupils and parents.
It is feared the impact of adding VAT to fees at such short notice could cause redundancies. (Stock image)
Labour announced the date in July, saying the tax will pay for 6,500 extra state school teachers. (Pictured, Prime Minister Keir Starmer)
The union is worried about redundancies for those in the private sector, and an increase in demand for Special Educational Needs and Disabilities (SEND) provision in the state sector.
Meanwhile, ASCL called for a comprehensive impact assessment and said implementation should be delayed until September 2025 at the earliest.
Leaders of private schools say they are still unable to register for VAT because the plans are not yet enshrined in law and will not be until after the budget on 30 October.
In its consultation submission, CIOT, the leading professional UK body on aspects of taxation, said: We are concerned that neither HMRC nor the private schools will be ready to implement the change in VAT liability effectively...
With an implementation date of 1 January 2025 that is effectively shortened by schools closing mid-December, we recommend that the implementation date be delayed accordingly.
The ATT said: The proposed commencement date of 1 January does not give sufficient time for schools or HMRC to adequately prepare and deliver the proposed changes...
Consideration should be given to deferring commencement to September 2025.
Yesterday, Mrs Phillipson sparked a backlash by sharing an article online which said private schools may lose frills such as embossed stationary in response to the VAT rise.
She said on X: Our state schools need teachers more than private schools need embossed stationery.
Our children need mental health support more than private schools need new pools. Our students need careers advice more than private schools need AstroTurf pitches.
Tory MP Nigel Huddleston replied: What appalling, divisive and stupid comments...
It proves theyre pursuing this policy for ideological, politics of envy reasons alone.
