Private schools offer 'pay now' option in attempt to dodge Labour VAT raid
The TelegraphLeading private schools are offering parents a “pay now” option to save money on Labour’s planned VAT charge on fees. The Sunday Times reported that schools were telling parents that existing schemes which allow them to pay fees for several years in advance could avoid the tax rise. “We did not encourage parents to use the scheme and we did not give either financial or legal advice.” Merchant Taylors’ School, in Hertfordshire, where parents pay £25,000 a year, also suggested parents could pay for fees in advance. our fees in advance scheme may provide parents with a degree of long-term assurance in the current climate.” The Sunday Times said schools had received advice from the Independent Schools’ Bursars Association that recommended telling parents that a new government could also change the rules to levy VAT at the point at which the money is spent rather than when it is handed over.