The imposition of VAT on private school fees is worrying for many parents and many schools. A recent survey showed that most schools have elected to reduce their fees so that the overall cost increase for parents is less than 20%. Few schools can do so without budget cuts and many will eat into reserved capital. Not all school have this capacity. Some have already failed and others will follow.
Even with schools trying to shield their parents for the full impact of VAT a large number of parents are being forced to consider whether private schooling remains a sustainable option. This decision can be a particularly challenging in separated families where there will be competing household budgets to consider and less ongoing transparency about finances.
A New School?
If you are concerned about your ability to continue to fund school fees you should speak to your school in the first instance. Many schools are able to offer means tested bursaries or scholarships to help with fees which might be enough to see you through a difficult patch.
If that is not the answer, you will need to find a new school. You should do your due diligence thoroughly, visit proposed schools and establish that they can offer a place. You must then agree which school with the other parent. If you cannot agree the court can determine the matter as a “specific issue”. The best interests of your child(ren) will determine outcome.
Preparation is always key. You will need to check your school contract to ensure you give sufficient notice to avoid incurring additional fees – often a full term.
School Fees Orders
If you believe that you can no longer afford to make payments under an existing school fees order you should try to agree a way forward. Explain why, with evidence, ensure you have investigated alternate schools carefully and present some clear options.
If you cannot agree a way forward you should apply to court to vary – or discharge – the order.
To persuade the court to vary the order you will need to show a change of circumstances, significant enough to convince the judge that the original order cannot stand. An unexpected increase in cost may tip the balance of affordability.
A variation application allows a nuanced approach to the situation, perhaps taking into consideration key milestones in your child(ren)s education to ensure so far as possible that changes are managed carefully and are child friendly. Planning ahead is always key.
By contrast, payments made by agreement cannot be enforced.
Ongoing payments would need to be secured by a new application to the court for a school fees order and the reverse scenario applies. The applicant would need to convince the court that the intended payee can afford to make the payments and that the proposed school was the best option for the child – again, careful research and a clear plan is needed.
Take advice. Early discussions with your family lawyer can help you to navigate this delicate process and avoid unintended disruptions to your children’s education.
The information contained in this article is general guidance only. The application and impact of laws can vary widely depending on the specific facts involved. The information in this article is provided with the understanding that the authors and presenters are not giving legal, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional legal, tax or other competent advisers. Before making any decision or taking any action, you should consult a Child & Child professional.
