KWC fees.

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

Arcane is the right word. You get the impression it's one of those taxes they don't really want you to understand. A bit like NI. They just keep the headline income tax fairly straightforward to cover their tracks.

[finlo]

On a similar note does anyone know if Labours rumoured halt on pension tax free lump sums will affect us here?

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

6 minutes ago, finlo said:

On a similar note does anyone know if Labours rumoured halt on pension tax free lump sums will affect us here?

I think we have different pension freedoms anyway don't we, so probably not?

[finlo]

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

I think we have different pension freedoms anyway don't we, so probably not?

We do, however my pension is held with a UK provider possibly muddying the waters?

[Gladys]

35 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.  IIRC, exempt means you don't have to register, but you can't claim VAT back on purchases.  You are outside of the VAT  regime.

Zero rate is the rate of VAT applied to certain categories of sales by those businesses who are required to register, because they are not exempt and have crossed the turnover threshold for registration. They can claim VAT back on purchases, but not sure if it is all purchases.  There also may be some businesses who have a mix of zero rate and standard rate sales.  

It is hellishly complex. 

 

[Harry Lamb]

4 hours ago, Numbnuts said:

Totally , I agree . Sadly I didn’t really get either due to illness in my teens and early 20’s. But from viewing sometimes from the inside there is  for sure advantages for both setups. Ohhhh , but you knew what I was  saying ,Right ? . Their , they’re, there ….its not life threatening but my illness was . 

How long have you had since?

[Hairy Poppins]

If they're finding it expensive then they just need to eat less avocado toast, cancel Netflix and get a second job in the Co-op. 

 

Or set up a shell company and run a VAT dodging scheme.

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

2 hours ago, finlo said:

We do, however my pension is held with a UK provider possibly muddying the waters?

Mine's with Aviva but it's a Manx plan 

[finlo]

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

Mine's with Aviva but it's a Manx plan 

So is mine, but only a small proportion of it is in the Manx plan because that only came into being in the last 3 or 4 years.

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

27 minutes ago, finlo said:

So is mine, but only a small proportion of it is in the Manx plan because that only came into being in the last 3 or 4 years.

Are you sure, my Manx plan is from the 90s

[finlo]

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

Are you sure, my Manx plan is from the 90s

Yep new policy came into being in the last few years new Manx policy number starts with MF existing funds weren't transferred into it.

[WTF]

11 minutes ago, finlo said:

Yep new policy came into being in the last few years new Manx policy number starts with MF existing funds weren't transferred into it.

can you get them moved over             ?

[finlo]

1 hour ago, WTF said:

can you get them moved over             ?

No idea, time to take professional advice PDQ methinks!

[Kopek]

The Labour policy is not detailed at the mo. It could be that the educational portion of the fee is Vat'able and the food and accomodation part is not??? Or vise versa?

Highly likely that the educational part will be taxed as there is a 'perception' that a public school education will lead to higher salary in later life? Just like University education!

Not a lot of deductables in school catering? Chocolate and ice cream??? Tho KBs do outside catering, wine etc, VAT charged means they must have VAT registration to benefit from the input? Tho this could be kept separate from the educational side?

There are Bursaries available but it's highly likely that the majority of  fee paying parents will suck up the the 10-15% increase?

[The Phantom]

16 hours 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.

Might work for a new setup where they have to buy all that stuff at the outset, but surely they own all that stuff already. They can't claim retrospectively. Isn't half the point with KWC that it's like Hogwarts and everything is oldy worldy. I'm surprised they don't have a horse drawn carriage for their School bus.