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Tax-Efficient School Fee Planning Advice

“Fail to prepare, prepare to fail"
Benjamin Franklin

It’s no secret that school fees are dauntingly expensive and a long-term commitment for families…

While many parents adopt a ‘pay as you go’ strategy, putting a structured plan in place can help significantly.

At Featherstone, we provide tax-efficient school fee planning and investment advice to support your child’s education costs. We will help you put together an effective school-fee savings plan to make sure your savings are invested in the optimal way.

Our approach is to keep things simple and uncontentious, often making use of unused (and surprisingly generous) tax allowances.

Our School Fee Planning Services

School-Fee Savings Plan

Planning for school fees encourages parents and families to set aside funds for upcoming education costs.

We help them put a plan in place to make sure they are being as tax efficient as possible and to ensure they are investing with a suitable level of risk that considers when the client will need to start paying school fees.

While the main purpose of school fee planning is to cover tuition for school and university, the allocated funds can also be used more flexibly, if required, for other unexpected costs.

These savings plans focus on being tax-efficient and preserving capital to help cover your child’s future education costs.

Tax-Efficient Investment

We recommend suitable investment strategies for clients looking to save and invest for school fees. We use cashflow modelling to assist with planning for the payment of school fees.

Some tax-efficient investment solutions include:

  • Investment ISAs
  • Junior ISAs
  • Pensions (e.g. SIPPs)

Strategies Involving Grandparents

Even with the help of tax-efficient saving and investment strategies, many parents will still struggle to save enough money for private or independent school fees, given the substantial cost of private education. As a result, grandparents may offer financial help.

Some possible methods include:

  • Lump Sum Gifts
  • Gifts out of Excess Income
  • Setting up a Trust
  • Setting up a Family Investment Company

Tax Planning beyond School Fees

Our tax planning services go beyond just school fee planning. With experience in comprehensive tax planning, we take a holistic view of your finances, including income, investments, capital gains, and family situation, to uncover tax savings opportunities in every area we can. We aim to minimise your overall tax burden.

What is School Fee Planning?

School fee planning refers to the process of financially preparing and saving for the future or current education costs of your children in the most strategic and tax-efficient way possible.

Benefits of School Fee Planning

School fee planning’s key benefits include reducing the eventual financial burden by making it manageable, ensuring the availability of sufficient funds for the child’s education at good institutions, avoiding debt or dipping into savings, providing peace of mind, harnessing the power of compounding by starting early, and potentially making the most of any tax allowances. With proper school fee planning, parents can secure their children’s education without compromising other crucial financial goals.