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HMRC ignored warning over ‘inadequate and incoherent’ independent school VAT advice
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Independent sector
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HM Revenue and Customs (HMRC) was warned a week before publishing its guidance for independent schools on 10 October that the document contained numerous errors, The Telegraph has learned. According to the paper, the HMRC was told the advice was “inadequate and incoherent” but chose to ignore the warning. Leading tax advisers have criticised the guidance, accusing it of contradicting itself and reading as if it was “not properly thought through or proofed”. The Independent Schools’ Bursars Association (ISBA) was invited to review an advanced copy of the guidance as a key stakeholder and was given three days to respond. Chief executive of the ISBA David Woodgate stated that the organisation had provided a detailed response within the timeframe, but "they [HMRC] basically ignored that and issued the guidelines anyway". The ISBA has joined calls against the policy's January implementation and is urging urged ministers to delay the policy until next September. An accompanying item outlines what is, and is not, exempt from VAT under the government's plans. By Pieter Snepvangers.
Julie Robinson, chief executive of the Independent Schools Council (ISC), was interviewed by Tom Swarbrick on LBC yesterday, after ministers admitted Labour's VAT on school fees policy will cost the Foreign Office an additional £1 million this year. Ms Robinson said: "This story is just another example of a consequence of this policy that hasn't been fully thought through in the rush to implement VAT in January, which is against the advice of schools, teaching unions and tax experts." Calling for "a proper impact report" before the VAT policy is brought into effect, Ms Robinson also noted that the ISBA has submitted "250 questions that still remain unanswered". Listen from 01:42:15.
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House of Lords: Independent school fees and VAT
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Political
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In oral questions at the House of Lords yesterday, Labour peer Lord Hacking expressed concern about the potential impact of Labour's VAT policy on parents' ability to afford increased fees, and Lord Lexden highlighted the "dire consequences" of the tax. Lord Lexden, president of the Independent Schools Association (ISA), specifically noted the risks posed to pupils at independent special educational needs and disabilities (SEND) schools, which prompted further discussions about the government's assumptions regarding schools' capacity to absorb VAT costs. He said: "Is it not time that the Government realised that their education tax—the first in our history—is likely to force a large number of parents, particularly those using small special needs schools in the independent sector, to move their children next term to state schools which are wholly unprepared for them?" Hansard.
The questions in the House of Lords followed a debate on Thursday on the issue, during which Lord Lexden asked what assessment ministers have made of the implications of levying VAT on independent schools with effect from 1 January 2025. Criticising the rushed implementation of the government's policy, Lord Lexden called for a reconsideration of the timeline to better support families. He said: "Can it be right to inflict on some—perhaps many—of these children the problems that the imposition of VAT... will inevitably cause?" Hansard.
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Letters: Labour's VAT policy
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Letters
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In letters to The Telegraph, a number of readers focus on Labour's plans to impose VAT on school fees. Robin SeQueira from Dorset warns that the tax policy will make independent education "even more exclusive", disproportionately affecting those who make sacrifices for their children to attend. Surrey-based Anthony Singlehurst believes the VAT plans will have a negative impact on the state sector, and warns: "Those who believe that adding VAT to school fees does not affect them should think more carefully about the consequences." Bill Hayes from Kent seeks to highlight the impact of Labour's tax policy on children, especially those who will be forced to move schools during the academic year. Mr Hayes states that being forced to switch schools is a "recipe for disaster" and that such changes are challenging for pupils "through no fault of their own." The letters are at the very end of the page.
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Government considers ban on smacking children in England
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Child welfare
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Ministers are considering a smacking ban for England, the Department for Education (DfE) has confirmed. Such bans have already been brought in by devolved governments in Scotland and Wales, as well as Jersey, where the use of physical violence to punish children has been outlawed. Following fresh calls for a ban by children's commissioner for England Dame Rachel de Souza, Labour ministers are now "looking carefully" at whether more can be done on the issue. By Jennifer McKiernan, BBC News.
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Rugby in schools: 'An urgent issue approaching crisis point'
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Sport
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The Rugby Football Union (RFU) has launched a radical plan to save school rugby after an independent report warned it is an "urgent issue approaching crisis point". Three forms of the game will be introduced, including “reduced contact”, after the report predicted it will become a “declining minority sport” unless bold changes are made. The Telegraph outlines the report's key recommendations. By Daniel Schofield.
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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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Members can contact the ISC if they know in advance of news, letters or opinions that are likely to feature in the media, or are aware of existing coverage which they would like to see featured in the DNS.
Headlines and first-line summaries are written by the ISC with the link directing to the source material. You should read and comply with the terms and conditions of the websites to which we link.
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