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Top Oxfordshire Prep School to Close Amid Controversial VAT Policy on Private Education


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Carrdus School, a well-regarded preparatory school in Oxfordshire and a part of the Tudor Hall school network, has announced it will close its doors in the coming spring unless a buyer is found. The decision, which has left parents and faculty in shock, comes in response to financial pressures brought on by new government tax policies affecting private schools.

 

The Chair of Governors at Tudor Hall, Alison Darling, explained in a letter to parents that reduced enrollment at Carrdus, driven by recent changes in VAT policies on school fees, as well as increased National Insurance contributions, made it financially unsustainable for Tudor Hall to continue funding the school. Darling wrote, “You will know only too well that the introduction of VAT on independent school fees has put a great deal of pressure on parents and schools.”

 

She further criticized the government's decision not to delay the implementation of a 20% VAT on private school fees, which was enacted in January despite strong opposition. “Despite the support of our professional associations in lobbying the Government in recent months, the Government has not responded to the call to reconsider its policy nor, even, to delay implementation until September 2025,” she stated. This timing has put many private schools under intense financial strain, particularly those with already declining enrollment rates.

 

The letter outlined how the new VAT on fees prompted many parents to withdraw their children from Carrdus, either at the end of the autumn term or the academic year. Darling added, “The combination of VAT across both schools, further compounded by the increase in employers’ National Insurance contributions, and the Carrdus pupil roll falling further below a sustainable number, means that Tudor Hall is no longer able to make the substantial financial commitment to Carrdus School that is required.”

 

The Good Schools Guide, a respected directory for independent schools, has described Carrdus as a "gem," recognizing the school’s excellence in educating over 100 boys and girls between the ages of 3 and 11. However, it now joins a growing list of private schools facing closure due to enrollment declines linked to VAT and other rising operational costs.

 

This recent development comes amid broader concerns that such tax policies could lead to an exodus of students from the private sector into the already stretched state school system. Warnings from industry experts suggest that tens of thousands of students could soon flood state schools, raising questions about how prepared these institutions are to accommodate the potential influx.

 

Based on a report by Daily Mail 2024-11-12

 

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Posted
4 minutes ago, RuamRudy said:

If this company's business model was reliant upon taxpayer subsidies then it was clearly not a viable long term business, or it was run by people not up to the task of managing a business. 

 

What taxpayer subsidies were / are  they receiving .... thanks 

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Posted
1 minute ago, Bkk Brian said:

You would need to identify what tax subsidies first before then going onto make assumptions

 

It's right up there in the headline. 

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Posted
1 minute ago, RuamRudy said:

 

It's right up there in the headline. 

So you cant read past the headline then, got it.

 

9 hours ago, Social Media said:

The combination of VAT across both schools, further compounded by the increase in employers’ National Insurance contributions

 

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Posted
6 minutes ago, RuamRudy said:

If this company's business model was reliant upon taxpayer subsidies then it was clearly not a viable long term business, or it was run by people not up to the task of managing a business. 

 

  So you don't know and are just guessing ?

Its the new Labours policies that caused the school to close 

 

 

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Posted
Just now, Eloquent pilgrim said:

 

What taxpayer subsidies were / are  they receiving .... thanks 

 

It's not difficult. When one pays for a service, generally VAT is charged on top. If that service is exempt then the loss of VAT is a loss to the taxpayer. 

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Posted
24 minutes ago, Bkk Brian said:

There are as lot of services that are exempt from VAT, should they all now charge more just incase?

 

That depends entirely upon the nature of the service. Non essential services which are a matter of personal preference should not, in my opinion, be exempt from vat. 

 

31 minutes ago, Bkk Brian said:

I dont think you know a lot about business do you.

 

What, specifically, makes you say that? 

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Posted
3 minutes ago, Eloquent pilgrim said:

private education has never been taxed by VAT in the UK

 

That really isn't a justification for continuing it. 

 

4 minutes ago, Eloquent pilgrim said:

this socialist / communist Government

 

Are you sure that you know that those words really mean? 

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Posted
2 minutes ago, RuamRudy said:

 

That depends entirely upon the nature of the service. Non essential services which are a matter of personal preference should not, in my opinion, be exempt from vat. 

 

 

What, specifically, makes you say that? 

Carrdus School was founded in 1957, yet you claimed it did not have a long term business model. Please explain? Education is not a non essential service by the way. Your opinion is not in the equation and nothing to do with their business model.

 

 

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Posted
Just now, Bkk Brian said:

Carrdus School was founded in 1957, yet you claimed it did not have a long term business model. Please explain? Education is not a non essential service by the way. Your opinion is not in the equation and nothing to do with their business model.

 

 

 

If, after decades of being in business, it can't function without the allocation of exemptions that most private businesses don't get to enjoy, it's business model is based upon not having to share a level playing field. 

 

3 minutes ago, Bkk Brian said:

Education is not a non essential service

 

I don't deny that, nor does the government. That's why it provides free education for school age students. 

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Posted
43 minutes ago, Bkk Brian said:

Parents have left and because they cannot afford the VAT hike, how could they have planned for that?

 

But you said it was a non essential service in your previous post, make your mind up time......

 

Fee paying schools are non essential - absolutely no doubt about that. If you are confused then the confusion is all yours. 

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Posted
2 hours ago, RuamRudy said:

 

It's not difficult. When one pays for a service, generally VAT is charged on top. If that service is exempt then the loss of VAT is a loss to the taxpayer. 

 

So you are in favour of Universities also being hit with this then as that would raise tuition fees for students by 20%?  They are currently exempt VAT.   

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Posted
29 minutes ago, JonnyF said:

 

I'm guessing he sees University students as priviliged little rich kids full of students rowing their boats down the river at the weekends, in which case I'm sure he would like to see them punished.

 

The politics of jealousy and class hatred. The politics of the left. 

 

Or the politics of your warped mind? 

Posted
48 minutes ago, James105 said:

 

So you are in favour of Universities also being hit with this then as that would raise tuition fees for students by 20%?  They are currently exempt VAT.   

 

1) That's not an analogous example;

2) No, but nobody is suggesting to the contrary. 

Posted
1 hour ago, RuamRudy said:

 

Fee paying schools are non essential - absolutely no doubt about that. If you are confused then the confusion is all yours. 

If you have no doubt about that then you can easily provide a link to that. You can't though I know. Did you know there are plenty of fee paying schools suing the goverment over this? Did you know it is a human rights issue?

Posted (edited)

Labour, Forging ahead.

Maybe,  ( No Care Kier ) ,  can strike a deal with the owners and  fill the place with  illegal immigrants,  then bill the uk tax payer for it.

After all they are running out of hotels. got to be able to get a few room with en suite  bathroom and queen size beds in that place for them.

Maybe even set up some Croquet work shops for them.

Got to be a nice lawn for them to play on there,

Win, Win. :stoner:

 

 

 

 

Edited by quake
Posted
16 minutes ago, Bkk Brian said:

If you have no doubt about that then you can easily provide a link to that. You can't though I know. 

 

Is this really your argument? If I can't provide a link to show that fee paying schools in the UK are not essential then I am wrong? 

 

18 minutes ago, Bkk Brian said:

Did you know there are plenty of fee paying schools suing the goverment over this?

 

That doesn't make their case any more valid. 

 

19 minutes ago, Bkk Brian said:

Did you know it is a human rights issue?

 

No, I didn't. What human rights are being violated? 

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Posted
3 hours ago, Bkk Brian said:

You would need to identify what tax subsidies first before then going onto make assumptions

Exemption from VAT on private school fees is a subsidy.

Next.

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Posted
3 minutes ago, RuamRudy said:

 

Is this really your argument? If I can't provide a link to show that fee paying schools in the UK are not essential then I am wrong? 

 

 

That doesn't make their case any more valid. 

 

 

No, I didn't. What human rights are being violated? 

You made a claim. Back it up. I will be more than happy to follow up with a link to my claim

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