We are a firm of chartered accountants and tax advisers supporting businesses and individuals with their accounting and tax matters.
A great investment made it even better
We can help you reduce the cost of private school fee by up to more than 50%. Significant savings can be achieved by utilising tax efficient structures. A plan often comprises multiple strategies that are aligned to achieve a common goal by taking advantage of the right investments and savings, combined with tax planning at the right time.
Tax relief is not available on school fees directly nor can you take a salary sacrifice for school fees; however, there are opportunities to reclaim and minimise tax. We have proven strategies that relate to income, capital gains and Inheritance Tax; the proceeds of which can be put into your school fees plan.
We offer a range of ready made and bespoke products to help reduce the private school fee. Tax savings far exceed the professional fee to implement and maintain the structure.
How does it work?
It is a form of Trust planning and thus, utilises the rather complicated Trust law to deliver the tax savings. There are different ways to achieve the mot tax efficient position which is why there is no template to follow. It depends on the circumstances we are dealing with.
To keep it simple, it involves using a trust to pay the school fee and the children can become taxpayers by submitting a self-assessment tax return. It is a great tool because it uses their tax free band to enable tax savings. There is a anti-tax avoidance legislation in place to stop parent from using childern’s tax free allowance. Therefore, we use a special structure to ensure compliance with the tax legislation.
How much is it?
There is a set up cost to create the tax efficient structure which can become your family trust if you wish. After that there is only a maintenance fee to manage the school fee and apply for refunds every year which enables the tax savings. On average, the final fee is about 20%-30% of what you save. So, you know that the savings are greater than the cost.