Private school Advance Fees Schemes - pros and cons?

[feesquestion]

DS's new school gives the option of paying his whole education up-front. We have the cash, and it's possible that this would allow us to avoid VAT (depending on how the legislation is written).

Has anyone else done this? What should we be considering? Will we regret it?

Any advice much appreciated.

I think if the discount in the scheme is such that you as a higher rate tax payer would be neutral, then it would, in any event make sense to prepay - as long as you are comfortable with the financial viability of the private school.

By prepaying you might be helping the private school, when they most need help. You will be depriving HMRC and helping the school. It is exactly why some very rich people are doing this. And if they save VAT in the process, they will be happy. If not, they do not care too much. Some very rich people may even donate the equivalent VAT amount back to the school as a charitable donation (thereby availing of charitable relief) in the biggest f… you to Government policy. I have heard some people discuss precisely this.

The Labour Party should be going after drugs, crime and real fraud. Not some kids getting a good education. If they do this, then the rich will act accordingly.