Daniel Sinek, digital marketing executive at Top to Toe EPOS, highlights the vital campaign to abolish VAT on schoolwear, and why this cause has the company’s full support.
Picture a classroom filled with students, each wearing their school uniform as a badge of identity, discipline, and equality. These uniforms are more than just clothing; they are symbols of a shared identity and educational journey. However, the weight of their cost has become a challenge for many families across the United Kingdom.
During 2022, UK communities endured an unprecedented cost of living crisis, with inflation soaring to a staggering 11.1% − the highest in over four decades. While we’ve seen some relief as inflation receded to 6.7% in September 2023, it’s still more than double the historical average. A recent study by the Office for National Statistics tells us that 52% of adults in the UK are grappling with rising living costs, impacting their ability to afford essentials like school attire.
But there’s more to this story.
A recent study from The Royal College of Paediatrics and Child Health, based on data from The World Health Organisation, reveals a startling trend. Children in the UK are now larger than ever, with underprivileged communities experiencing a 14% more pronounced increase in size. Sadly, these very communities are also burdened with a 14% higher VAT rate on their children’s school uniforms.
In the UK, VAT, a value-added tax, stands at a standard 20%, targeting non-essential goods and services. However, it distinguishes between schoolwear for children under and over 14 years of age according to size. Schoolwear for kids over 14 falls under the 20% VAT rate, while that for younger children enjoys a 0% VAT rate, as defined by VAT notice 714. The issue? No updates have been made to these size guidelines, leaving children under 14, who are larger than the norm, unfairly subjected to the standard VAT rate. It’s taxation injustice for kids who should be exempt.
Enter the Schoolwear Association of the UK, a dedicated organization on a mission to promote equality in the schoolwear industry.
Representing retailers, suppliers and manufacturers, the Schoolwear Association stands for the values of equality for all parents and children. It argues that the current VAT structure fosters inequality, labelling school uniforms as non-essential, despite being a requirement for nearly all schools. With 98% of secondary schools in the UK requiring a complete uniform, this classification defies common sense.
In conclusion, the existing VAT structure for schoolwear cries out for reform. Children under 14 are unfairly charged VAT on their school attire, and we at Top to Toe EPOS fully support the Schoolwear Association’s campaign. We’re rallying behind the movement to abolish VAT on schoolwear, a stride towards equality for families in the UK’s educational system. It’s time to make a change and unburden those who need it the most.