Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Employer paying school fees

(13 Posts)
Mandy21 Fri 21-Jun-13 08:34:55

blush thought it was worth mentioning grin

Picturesinthefirelight Thu 20-Jun-13 21:22:43

No, he's not planning paternity leave lol. He's been tied!

Mandy21 Thu 20-Jun-13 21:12:19

I haven't read the article but there are various issues with salary sacrifice (I do it with nursery fees - get all of those paid by employer tax free) - death in service / redundancy payment etc are based on the lower pay once the salary sacrifice has been deducted. Not a massive issue for your DH (unless he's planning paternity leave and presumably it would only be a couple of weeks in any event) but it had a big impact on my maternity pay. Just make sure you appreciate that its not without its risks.

Picturesinthefirelight Wed 19-Jun-13 23:21:29

Ive sent him a link and hes going to speak to someone tomorrow.

riksti Wed 19-Jun-13 22:26:06

In that case if the employer is willing to go down the salary sacrifice route and the figures stack up it may be worth doing.

Picturesinthefirelight Wed 19-Jun-13 22:17:20

Dh is an employee of the school that dd will be going to in September and we have been offered a substantial discount on fees.

riksti Wed 19-Jun-13 21:57:47

It's accurate but obviously only applies to the employees of the independent school that work at the same school where they want to send their children, not any employees. And obviously the school has to agree to offer their employee's child a place at a discounted rate.

Picturesinthefirelight Wed 19-Jun-13 13:30:38

http://www.fismagazine.co.uk/financial/accounting/salary_sacrifices.html

Ooh! Is this up to date?

Picturesinthefirelight Wed 19-Jun-13 13:23:08

Did I read somewhere there was some sort of loophole whereby a private school could deduct school fees from an employees salary before NI almost like a salary sacrifice - or am I wrong.

Would be nice if that was possible.

MsAverage Wed 19-Jun-13 13:19:17

Ok, here it is.
http://www.hmrc.gov.uk/payerti/exb/a-z/s/school-fees.htm#2

"add the value of the benefit to the employee's earnings when deducting and paying Class 1 NICs (but not PAYE tax) through your payroll"

But then the tax code is adjusted and you still have to pay the tax.

flowery Wed 19-Jun-13 08:12:13

School fees are taxable, see page 2 here

hermioneweasley Wed 19-Jun-13 08:09:02

I don't believe so, I think it's a taxable benefit in the normal way, but am bumping in the hope that someone more knowledgable comes along!

Is it possible you are thnking of Childcare vouchers?

MsAverage Wed 19-Jun-13 08:04:12

I just heard that if your employer pays your child's school fees, it is tax-free for you, you pay only 2% of NICs. Is that right? Is that the normal way to pay these fees?

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now