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Daily News Summary
17 October 2024

VAT on fees guidance 'not fit for purpose', ISC warns
HofC written answer: Armed Forces and independent education
Parent campaigners meet MPs to discuss SEND provision

VAT on fees guidance 'not fit for purpose', ISC warns

 

Official guidance on charging VAT on independent school fees is “not fit for purpose”, the Independent Schools Council (ISC) has warned. In a letter seen by Tes, the organisation said that recently published HM Revenues and Customs (HMRC) guidance has been ”poorly drafted” and “does not give schools the information they need to operate VAT from January”. Writing to chief Treasury minister James Murray earlier this week, the ISC said it was “grateful” to have been able to comment on draft versions of the guidance but the latest version has been ”broadly unaltered” and does not take into account “many of the legitimate questions and concerns that were raised". The ISC also described the decision to exclude most of its feedback as “disheartening” and “disappointing”. Tes understands that the Treasury is yet to respond to ISC’s letter, which was signed by all seven of its member organisations. By Cerys Turner.

HMRC documents have revealed whole nursery classes will be affected by the VAT plans despite the government’s intention to exempt them. The papers show that if a nursery class provided by an independent school contains any five-year-olds – the compulsory school age – then their whole class will be subject to the tax. In concerns shared with iNews, Laura Hare, headteacher at Park School, said VAT on nursery classes could be the “cherry on the cake” for the threat posed to her school’s survival. Describing the tax as a “travesty”, she explained how there would only be two five-year-olds in the class by the end of the school year but the entire class would be subject to VAT on fees. Chair of governors at Sands School Diarmid Mackenzie, who has been campaigning against VAT on behalf of small independent schools, said the decision poses a “very real problem” for such establishments that have mixed-age classes. Echoing these concerns, deputy chief executive of the Independent Association of Prep Schools (IAPS) Emilie Darwin said: "The Government has given no consideration to the real impact on children of this ill thought-through policy. We are hugely concerned about the stipulation in the new HMRC guidance." Reference is made to figures from the ISC. By Connie Dimsdale.

Katharine Birbalsingh has said independent school families facing higher fees due to Labour's VAT plans are coming to look at her state school for the first time. Questioning whether the policy would raise any funds for the Treasury to improve education in the state sector, the headteacher of Michaela Community School told Times Radio: “It will mean more children in the state sector, and then government will need to find the money to fund that. And the small amount of money, I would argue, that would be saved from the VAT issue will not be able to make up for the amount of children then coming into the state sector.” By Nicholas Cecil, Evening Standard.

Writing in The Times, Philip Cooper discusses the financial strain that Labour's VAT policy will place on families, particularly "the children of ordinary hard-working parents who make financial sacrifices to prioritise the provision of private education". Mr Cooper highlights the potential impact on state school places as well as the added complications for divorced parents, who may face disputes over school fees and emotional challenges associated with transitioning their children to new schools. He concludes: "Parents must think carefully about the long-term impact of their decisions on the children — advice that perhaps the government would do well to heed." Philip Cooper is a partner at the London office of JMW Solicitors.

 

HofC written answer: Armed Forces and independent education

 

In a written question in the House of Commons, shadow education secretary Damian Hinds asked the secretary of state for defence how many children of military service personnel are educated in independent schools under the Continuity of Education Allowance (CEA) programme, by region.

In response, Labour MP for Birmingham Selly Oak Alistair Carns said: "The Ministry of Defence does not hold data on region or type of school for those Service personnel who claim Continuity of Education Allowance (CEA); however, I can confirm that 2,678 Service personnel claimed CEA for 4,021 Service children in Academic Year 2023-24." Hansard.

 
Hansard

Parent campaigners meet MPs to discuss SEND provision

 

Several parents from the West Northants SEND Action Group met MPs at Westminster yesterday to discuss special educational needs and disabilities (SEND) provision. The group, formed two years ago, aims to raise awareness of "failures" in the county’s SEND services and draw attention to the experiences of children like their own, who have additional needs. By Laura Coffey, BBC News.

 
BBC

 

The Independent Schools Council (ISC) monitors the national and educational press in order to keep independent schools up-to-date with relevant education news. The DNS is a service primarily for schools in membership of ISC associations, although other interested parties can choose to sign-up. We endeavour to include relevant news and commentary and, wherever possible, notable public letters. Where capacity allows, we may include links to ISC blogs, press statements and information about school or association events. News stories are selected based on their relevance to the independent sector as a whole. Editorial control of the DNS remains solely with the ISC.

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