Mixed-age classes are often used in early years provision by small private schools. They combine nursery children with reception-age children to form classes of three to five-year-olds.
Labour previously vowed all nursery provision, even if part of a private school, would be exempt from its tax raid.
However, buried in the Government’s draft legislation, a nursery class is defined as being “composed wholly of children who are under compulsory school age (five years old) and would not be expected to attain that age while in that class”.
It means that in a class where one child is five years old or due to turn five by the end of the year, the whole class is forced to pay VAT, no matter their age.
The world is just full of complicated little details. Which makes rules – strict, national – rules about who may do what really complicated.
Not helped by HMT’s constant avoidance of proper consultation. If we are very lucky we get a consultation on how to implement law after they already screwed it up.
As a civil servant I once spent a long evening writing part of the finance act for the next day as they decided at the last moment they were doing something through primary legislation instead of statutory code (as we’d advised).
I haven’t yet seen a definition of ‘private education’ that makes any sense. As it goes my local football team could have to charge VAT for it’s youth academies, and the after school club, and the brownies.
Specific law is bad law.
Swannypol,
It’s even harder when you start from the premise that you want to tax the because green eyed monster and then set about ways to do it, see also Non Doms.
“Labour previously vowed all nursery provision, even if part of a private school, would be exempt from its tax raid.”
This would be significant only if they had a sense of shame and honour. But they’ve proved beyond all doubt that they don’t. Even if this were put to the relevant ministers in interview or in the Commons, they would just go in for the usual bluster and effectively ignore it.
And collect the extra tax, of course.
Reminded of a few years back when NYC decided to increase taxes on prepared foods, but not groceries. One fun example of the hair splitting involved was that if you bought a bagel, it wasn’t taxed, but if they sliced it & put cream cheese on it, voila, it’s prepared food and taxed. What if they slice it but don’t add cheese? That depend on whether it’s sitting around pre-sliced, or they slice it after you order it.
Fun stuff
Swannypol: Good point. Do bookshops have to charge VAT on Teach Yourself books now?
Esteban~
VAT: is that a biscuit or a cake?, is that sausage-roll hot or cold?
Private schools are to be taxed because it’s wicked to use your own money to influence your child’s education.
How lucky that it’s not wicked to use Alli-pally’s money to influence your child’s education.
“Hello Mr Cohen, your bagels look especially delicious this morning. I’d be even more likely to order one if it were sliced.”
@Esteban
What if they slice it but don’t add cheese? That depend on whether it’s sitting around pre-sliced, or they slice it after you order it
Warburtons sell pre-sliced bagels – should they have VAT applied?