The cost of private education for your children is likely to be the largest expense you undertake.

Spreading the cost over a longer time period will make the education more affordable and by applying tax planning, offer the opportunity to increase your long term wealth.

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

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.

If the costs of an independent education are not planned properly, it could prove serious for both the child and the parent at a later date.

Why shouldn’t I use my accountant or existing IFA to advise on school fees?

All SFIA advisers are fully qualified and are given further specialist training in school fees planning. Non specialists do not have the required expertise to forecast, plan and reduce costs.

If you go directly to product providers, you will need to research the options thoroughly and shop around. SFIA already have extensive knowledge of the marketplace and can select the most appropriate products for you and obtain preferential rates, saving you time, effort and money.

There are a variety of reasons why so many people choose SFIA. Please follow this link for a full description of all of the advantages we offer, but in summary:

— We specialise in school fees planning and have a network of experts throughout the UK
— As independent financial advisers we offer unbiased advice and select products from the entire marketplace
— We are a well established organisation able to gain preferential rates for our clients

You are able to save significant sums of money by planning over the long-term. The savings result from choosing the best investments, releasing equity efficiently when required and by careful tax planning. Register your interest for free consultation via our enquiry form.

One secret of paying school fees is to plan early. Money invested in insurance policies when your child is a baby will provide tax-free sums. Even as little as five years before your child is due to go to school, there are investments which will help to reduce the financial burden.

Spreading the cost and fully utilising tax benefits are other important techniques.

As independent financial advisors, we are able to offer products from the whole marketplace.

As school-fees specialists we are able to select and tailor products to meet your specific school fees requirements. Every plan is uniquely configured to meet all of your needs.

Not necessarily. SFIA will design a plan to meet your budget.

SFIA has designed bespoke software that allows them to design and amend school fees plans. SFIA has its very own comprehensive school fees database. We use the actual fees from a particular school when designing our plans. SFIA’s administrative team are there to ensure that you receive the right amount of money at the right time.

Unfortunately previous covenant schemes have all been abolished therefore we need to consider all remaining opportunities such as:

— Children’s annual income and capital gains tax allowances
— Annual tax-free investment allowances
— Pensions
— Investing in HMRC approved schemes
— Trust planning
— Options to re-assign life policies and investment bonds
— Tax-free returns available through offsetting against a personal mortgage
— Opportunities available through offshore investments

This is where personal financial advice is particularly important. If you were advised by SFIA your original plan is likely to have contingency built into it.

If there is still a shortfall, additional equity may be utilised and the plan extended over a longer period.

If you haven’t built up enough funds in advance, the alternatives are to pay-as-you-go out of income or borrowings. A common solution is to release equity from your property to make school payments and plan to pay back the borrowing over a longer period. A School Fees Pension Plan will allow you to pay the borrowings out of you tax free lump sum and realise an increased income from your pension.

Every family is in a different position, but the biggest single deciding factor is not the level of fees but the length of time available to build up a fund to pay those fees. Some of the factors that we are fully aware of and will ensure are:

— Is it good value?
— Is it safe?
— It is low risk?
— It is tax efficient?
— What are the hidden costs?
— It is timely?
— Is it flexible?

If you own your home, then you may be able to release equity from its value. Alternatively, you may need to borrow money as a secured or unsecured loan.

It may be possible to set up an efficient draw down of capital secured against your property to spread the cost of school fees over a longer time period. You only pay interest on the money that is gradually withdrawn.

It is possible to apply for an insurance plan which will pay a monthly tax-free benefit in the event of death or diagnosis of a critical illness. The cost of this cover will depend on the level of the benefit, your age and state of health.

It is important to make allowances for uniforms, books, games equipment, excursions and other necessities.

Many senior schools and a few junior schools offer scholarships to attract bright or talented pupils to the school. They are usually awarded after a competitive examination, for academic, musical or artistic merit. Scholarships vary in value but rarely cover the whole fee; they might be worth as little as 10%.

Many schools also have bursaries – grants from the school – to help you pay the fees. These are often awarded after a ‘means test’ of family income.

Some schools offer grants to children of clergy, teachers and armed forces personnel. Others give help to children of former pupils, single parent families and orphans or concessions for brothers and sisters. You should contact schools to find out the details and how much awards are worth.

Some schools offer occasional or ad-hoc boarding which means children stay the occasional night (or nights) on a one-off basis; this could help parents who may be considering a move to boarding for their children or who are going to be away for a short time and would find it advantageous to know their son or daughter can be well cared for on the school site.

For more information on boarding you might also find the Boarding Schools’ Association (BSA) website useful.