Why do you need to plan school fees

Why do you need to plan school fees

There are good reasons why you should consider planning your school fees payments – and the good news is that SFIA are on hand to help.

Eighty percent of parents pay school fees directly from income. Whether the fees are readily affordable or not, this is unlikely to be the most efficient way. Whatever your circumstances are, the cost of school fees can be reduced.

A school fees plan can help:

  • Maximise your wealth
  • Make the fees more affordable
  • Ensure continuous education for your children
  • Minimise taxation (where appropriate)

Maximising your wealth

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 – it is possible to achieve significant benefits that will enhance a family’s overall financial net worth.

Making the fees more affordable

Where there is more than one child, it is the overlapping years that stress a family’s budgeting and affordability the most, but this can be avoided using strategies to forecast and manage these peak periods, thereby avoiding the financial hardship, stress and costs that is usually associated. Whilst it really is never too late to start a plan, the earlier you start the greater the saving potential.

Spreading the cost over a longer time period can also make education more affordable, and by applying tax planning you have the opportunity to increase your long-term wealth.

Do you want to discuss your requirements with SFIA?

As part of our service, SFIA take the time to understand our clients’ unique needs and circumstances. Please contact us on 01628 566777 or email webenquiry@sfia.co.uk for further information – we look forward to hearing from you.

Ensuring continuous education for your children

Having to remove a child from an independent school is one of the toughest decisions parents would face, and it can be avoided in most cases by a combination of forward planning and seeking the right advice. At SFIA, we ensure that the plans we put in place enable a child not only to stay at an independent school but enjoy the continuous benefits as well.

Minimising taxation (where appropriate)

Funding for school fees using income that is taxed or assets which when released are taxed, and\or paying tax on the proceeds of any inheritance, can significantly increase the size of the commitment.

In certain scenarios, we are able to mitigate or reclaim some of this tax through personalised planning strategies which in turn helps create a significantly improved situation.

Tax planning

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.

At SFIA, we offer a vast array of tax solutions, both ready-made and bespoke.

The SFIA School Fees Pension Plan

For those that qualify, our Pension Plan is often one of the best options.

It is possible – without any extra monthly cost – to build up a substantially greater pension fund and pay off your school fees. The additional tax relief gained can often be more than the original school fees!

Protecting school fees

Having decided to educate your children independently, it is important to take appropriate advice to ensure the continuity of their education.

There are products available that protect school fees payment in the event of redundancy, unemployment or accident and sickness.

Good advice may reduce the cost of education by 50% or more and ensure that your child completes their independent education regardless of a change in circumstances.