KWC fees.

[A fool and his money.....]

43 minutes ago, x-in-man said:

'Boarding schools – Following calls for clarity and concern from 32 boarding schools, it has been reported that they would not be subject to this potential VAT charge. It is at this point unclear the specific definition of this exemption.'

'Partial exemption –.. Currently, where private schools support children with certain special needs, there is an exemption opportunity. Similarly, private schools offering additional charitable or welfare services like pre-school education can qualify for exemption in certain circumstances. It remains to be seen whether any changes will affect these two cases, but if we do see any, it will make any partial exemption calculations even more complicated. However, a specialist advisor can assist with calculating where you stand and identifying your correct VAT status.'   

https://www.azets.co.uk/news-insights/articles/proposed-vat-on-independent-school-fees-expected-knock-on-impact/

'However, a specialist advisor can assist with calculating where you stand and identifying your correct VAT status.'   - which looks like an opportunity for some creative accounting firms to offer their services.

So - It doesn't look like it's just a case of an extra 20% on top of it all.  

I don't doubt it. I'm sure the IOM government will find a solution.

It will be interesting to see how though, especially in light of their protestations on the hospitality thread that there was nothing they could do about VAT arrangements for that sector.

 

 

[La Colombe]

1 hour ago, Numbnuts said:

There on there arse anyway

Jesus, I hope your parents didn't send you there. 

[Albert Tatlock]

Won't affect too many people...their fried chicken is shit anyway.

[Non-Believer]

1 hour ago, A fool and his money..... said:

I don't doubt it. I'm sure the IOM government will find a solution.

It will be interesting to see how though, especially in light of their protestations on the hospitality thread that there was nothing they could do about VAT arrangements for that sector.

Alf is a KWC Old Boy....

[Banker]

It was expensive enough when my children went there but another 20% which they will be obliged to add will mean it’s very expensive but it won’t impact the top end just those who will struggle to find 20% extra.

The sale of buchan for housing redevelopment will be a very large cash injection but if it fails then many local children could end up in local schools which will mean larger class numbers, the land is owned by a charitable trust and buildings listed so not sure what could be done with land.

[WTF]

42 minutes ago, Non-Believer said:

Alf is a KWC Old Boy....

says it all really.

[A fool and his money.....]

17 minutes ago, Banker said:

It was expensive enough when my children went there

Oooo get you 😁

[John Wright]

14 minutes ago, Banker said:

find 20% extra.

Of course, it won’t be 20%. Probably 15%, maybe less, given how VAT works.

I know lots of their inputs, wages as an example, aren’t subject to VAT and therefore there’s no input tax to set off against on fees, but lots of inputs, the minibus, building works, equipment, furniture, heat, light, power have input tax, which can be set off.

[A fool and his money.....]

3 minutes ago, John Wright said:

Of course, it won’t be 20%. Probably 15%, maybe less, given how VAT works.

I know lots of their inputs, wages as an example, aren’t subject to VAT and therefore there’s no input tax to set off against on fees, but lots of inputs, the minibus, building works, equipment, furniture, heat, light, power have input tax, which can be set off.

That's a good point. So as a business (or are they a charity?) would they currently be able to claim back VAT on expenses, despite almost all their income being VAT exempt? They'd certainly above the threshold to make it mandatory, or is that just on VATable income.

[John Wright]

6 minutes ago, A fool and his money..... said:

That's a good point. So as a business (or are they a charity?) would they currently be able to claim back VAT on expenses, despite almost all their income being VAT exempt? They'd certainly above the threshold to make it mandatory, or is that just on VATable income.

You’re into the arcane world of VAT.

The fact they are run by a charity is irrelevant, it’s the service they deliver.

There are two main options, exempt, say delivery of education as the output, and zero rated, say delivery of farm products as the output.

Exempt means you don’t have to register for VAT so you can neither charge nor claim back.

Zero rated means you register, outputs are VAT taxed at a rate of 0%, and you can claim the VAT back on the Massey Ferguson, etc.

[Roger Mexico]

20 minutes ago, John Wright said:

I know lots of their inputs, wages as an example, aren’t subject to VAT and therefore there’s no input tax to set off against on fees, but lots of inputs, the minibus, building works, equipment, furniture, heat, light, power have input tax, which can be set off.

But won't they be registered for VAT anyway and claiming this sort of thing back?  A bit like farmers, who also have zero/exempt outputs, but can still claim back VAT on what they pay to produce them.  So any benefit from that will already be built into the fees.

Edited to add:  Posted before I saw John's reply  while I was trying to find if they had a VAT No.

Edited August 3 by Roger Mexico

[A fool and his money.....]

2 minutes ago, John Wright said:

You’re into the arcane world of VAT.

The fact they are run by a charity is irrelevant, it’s the service they deliver.

There are two main options, exempt, say delivery of education as the output, and zero rated, say delivery of farm products as the output.

Exempt means you don’t have to register for VAT so you can neither charge nor claim back.

Zero rated means you register, outputs are VAT taxed at a rate of 0%, and you can claim the VAT back on the Massey Ferguson, etc.

Ah OK, thanks. You'd think it would be in their interests to be zero rated already then wouldn't you?

[John Wright]

2 minutes ago, A fool and his money..... said:

Ah OK, thanks. You'd think it would be in their interests to be zero rated already then wouldn't you?

Can’t register because they’re exempt

[A fool and his money.....]

2 minutes ago, John Wright said:

Can’t register because they’re exempt

So there's a difference between exempt and zero rated? I know you've explained the practical difference above, but I mean a difference between exempt and zero rated goods or services. 

[John Wright]

5 minutes ago, A fool and his money..... said:

So there's a difference between exempt and zero rated? I know you've explained the practical difference above, but I mean a difference between exempt and zero rated goods or services. 

Yes. They’re different things. I said it was arcane.