Reducing your School Fee Payment
SFIA offer various payment plans for school fees. In many cases the objective is to spread school fees payment over a longer period than the schooling period. There are tax planning techniques we can deploy that, in effect, make school fee payment out of your pre-tax income.
For those that qualify, our Pension Plan is often the best option to fund school fee payment. By extending the time you pay your school fees, you may, frequently without any extra monthly cost, build up a substantially greater pension fund and still make your school fees payments. The additional tax relief gained can often be more than the original school fees.
There are investment plans available that guarantee that their returns will meet expected school fee payment needs. Our tailored plans will contain an element of guaranteed return depending on your financial circumstances. SFIA plans are highly flexible and allow school fee payment dates to be altered, or for the benefits to be transferred to another child or for any other use.
Trust planning is an effective solution when Grandparents wish to contribute to the funding of their grandchildren's private school fee payment. You can set up a trust for grandchildren either during your lifetime or in your will, to operate after your death.
Where capital has been provided by a grandparent, any income credited to the trust is treated as the child's income. Each child is entitled to their own personal pre-tax income allowance. Similarly capital gains arising are also attributed to the child and therefore each child's annual capital gains exemption can be applied.
Protecting your School Fee Payment
Over 80% of parents make their school fee payment out of income. If the principal parental income ceases due to redundancy, unemployment or accident and sickness, many parents find it difficult to keep up with payments. There are products available that we can advise parents about that protect school fee payment and ensure that their children complete their independent education.
Contact us for more information or for a free, no obligation consultation.