VAT on fees guidance 'not fit for purpose', ISC warns
In a letter to the Treasury, the ISC has warned that official guidance on charging VAT on independent school fees is "poorly drafted" and "not fit for purpose".
In a letter to chief Treasury minister James Murray earlier this week, the Independent Schools Council (ISC) expressed gratitude for the opportunity to comment on draft versions of the latest HM Revenue & Customs (HMRC) guidance on charging and reclaiming VAT on goods and services related to independent school fees. The ISC noted, however, that the latest version remains “broadly unaltered” and does not address “many of the legitimate questions and concerns” raised. The ISC described the exclusion of most feedback as “disheartening” and “disappointing”.
Calling for ministers to provide ”more practical clarity” and a “simplified message” on how and when schools need to register for VAT, the ISC said “clear and understandable guidance is needed if mistakes are not to be made".
The Treasury is yet to respond to the ISC’s letter, which was signed by all seven of its member organisations.