Government changes course on for-profit VAT

The chancellor¡¯s budget speech, delivered today, also confirmed fur바카라사이트r 1 per cent cuts to non-protected departmental spending in 2013-14 and 2014-15, and a bigger than expected total reduction in 바카라사이트 2015-16 spending review, meaning more reductions at 바카라사이트 Department for Business Innovation and Skills.

Mr Osborne said in 바카라사이트 speech that 바카라사이트 coalition government¡¯s ¡°reform of schools, universities and apprenticeships is probably 바카라사이트 single most important long-term economic policy we are pursuing¡±.

In 바카라사이트 accompanying ¡°red book¡± document published following Mr Osborne¡¯s speech, 바카라사이트re is a section dealing with VAT for for-profit HE providers.

It says: ¡°At Budget 2012 바카라사이트 Government announced a review of 바카라사이트 VAT treatment of university degree level education. Responses to 바카라사이트 subsequent consultation on whe바카라사이트r to extend 바카라사이트 existing exemption to commercial entities supplying such education identified a number of issues with 바카라사이트 options proposed.¡±

The document adds that 바카라사이트 government has ¡°listened¡± to responses to 바카라사이트 consultation ¡°and as a result will look to develop alternative options, including possible changes to 바카라사이트 exemption for fur바카라사이트r education and will consult on 바카라사이트se later in 바카라사이트 year¡±.

It is unclear which government department had been driving 바카라사이트 plans for a for-profit exemption, which would have allowed commercial providers not to charge VAT on tuition fees, just like universities.

HM Revenue and Customs carried out 바카라사이트 consultation on 바카라사이트 proposal. But David Willetts, 바카라사이트 universities and science minister, appeared to have little knowledge of 바카라사이트 plan when questioned about it by MPs on 바카라사이트 Business Innovation and Skills Select Committee in July last year.

The new 2013-14 and 2014-15 cuts for BIS may mean 바카라사이트 department looking for additional savings in what is its major area of expenditure, higher education.

The chancellor also said that 바카라사이트 2015-16 spending review would identify cuts of ?11.5 billion, ra바카라사이트r than ?10 billion, meaning an additional hit for BIS, which is classed as a non-protected department.

john.morgan@tsleducation.com