I've never been able to understand why (state) sixth form colleges have to pay VAT? When we buy things like graphical calculators in bulk for students to buy, we have to charge them 20% more than their peers in schools. If we have to pay it, private schools certainly should! - ThreadSky

ecrmaths.bsky.social • 5 days ago

I've never been able to understand why (state) sixth form colleges have to pay VAT? When we buy things like graphical calculators in bulk for students to buy, we have to charge them 20% more than their peers in schools. If we have to pay it, private schools certainly should!

Reposted from The Guardian

High court dismisses challenges against adding VAT to UK private school fees

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mrcfmaths.bsky.social•5 days ago

I agree with the sentiment it is bizarre but if we sell the calculator on to pupils we have to charge VAT too.

ecrmaths.bsky.social•5 days ago

Oh, really? I was under the impression that schools were able to sell the CG5O (now discontinued) for £70, while we were having to charge the higher price of £84? Is that not the case? (I can't remember who told me that...)

themathsbazaar.bsky.social•5 days ago

We have to charge VAT AND Credit Card fees when we sell things on to the students

ecrmaths.bsky.social•5 days ago

Even if they're education related?
https://bsky.app/profile/mrcfmaths.bsky.social/post/3lrixcsmlts2l

ecrmaths.bsky.social•5 days ago

So who gets the VAT, if schools have bought them from Casio for £70 and sold them to students for £84? Do they have to complete an extra tax return or something?

danihosford.bsky.social•5 days ago

VAT is all about tax collection. The last person in the chain is the person who pays it. So if a school doesn't pay VAT, they can't charge it to pupils because they'd have to be VAT registered to pass the tax back to the gov.

Perhaps schools are a special case. I've only ever worked in colleges

mrcfmaths.bsky.social•5 days ago

Casio charge 70 + VAT to schools. If the school uses the calculators for school use and doesn't sell them to kids then they claim the VAT.
If they sell it on to the kids then they can't claim the VAT back.
At least that's my understanding on it.
I can ask our Finance manager next time I see him

ecrmaths.bsky.social•5 days ago

Ahh, ok. Maybe the person who told me they charged their students £70 was mistaken (I can't remember who it was)

mrcfmaths.bsky.social•5 days ago

So I've just done a search and my bursar is wrong.
Where things are related to education then VAT is not charged. I shall be contacting them next week as the kids paid too much.

danihosford.bsky.social•5 days ago

They might just be playing around the rules (a school could claim the pupils are buying them second hand).

Or they donate the calculator to the pupil. Meanwhile the pupil has donated to the school.

There'll be work arounds.

danihosford.bsky.social•5 days ago

Right, that would make sense.

Still, colleges have to pay a lot of VAT!

ecrmaths.bsky.social•5 days ago

Yeah, regardless of my minor calculator beef, it's not fair that state sixth forms pay VAT!

ecrmaths.bsky.social•5 days ago

So, am I right in thinking SFC students are paying more for the calculators than school students, in this scenario?

danihosford.bsky.social•5 days ago

Yes. Unless schools don't fit the usual model for VAT.

Calculators aside we lose over £80,000 a year in VAT.
It's not right!

ecrmaths.bsky.social•5 days ago

It definitely isn't! Just another discrepancy between sixth form colleges and schools (with or without sixth forms) 🙄

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