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schools fees - do they come out from salary before tax?

32 replies

schooling123 · 29/08/2019 06:46

I wonder if private school fees come out from salary before tax? Thank you.

OP posts:
BarbarAnna · 01/09/2019 17:27

Maybe just my industry then. Loads of contractors not paying their way and earning ridiculous day rates. There is a very fine line in my experience between tax efficiency and avoidance. Indeed the latter has been encouraged by an accountant to my friend starting their own business.

Bloomburger · 01/09/2019 17:52

I'd say those who have children at private school are responsible for the majority of the tax revenue in the UK.

JoceHark · 01/09/2019 17:57

No.

But I just wanted to say to Xenia, i've disagreed with so much you may have said over the years but you were always in my mind when I was a SAHM years ago.

I returned to work part time and then full time. A few months back I was offered a big promotion and I was going to turn it down due to childcare and feeling like I needed to be there more for the DC. I didn't in the end and I thought to myself at the time 'what would Xenia do'!

Anyway back to school fees, lolz, no they don't

MoveOnTheCards · 01/09/2019 18:00

Yeah nope.

LordProfFekkoThePenguinPhD · 01/09/2019 18:02

Not in the UK. Maybe in some other country

MrsSpenserGregson · 01/09/2019 18:05

Hang on, yes you're all correct except if the child is attending a fee-paying school at which one of the parents is also a teacher. In that case, the school fees will taken out of the parent's gross salary (probably at a discounted rate).

Xenia · 02/09/2019 09:19

(Thanks, Joce. It sounds like the right decision under the Xenia principles of maximise the money women earn and everything else goes better..... I am certainly not an oracle but am old in the sense my youngest are at univesity now so it does give you a bit more long term perspective).

Mrs S is right - for one of my children at prep school where his father taught we had to 15% of the fees only (that was the lowest allowed under tax law under th case of Pepper v Hart before it becomes a taxable benefit - the 15% was the marginal cost of adding that child to the school so I think the school would work out your net pay and then take off the in our case 15% of the annual fees which you were paying - so you were paying them gross however not net but paying a reduced value. If instead you were given 100% of the fees then English tax law says that becomes a taxable benefit in kind and you would be paying your 20% or 40% tax on that benefit. The 15% only is generous. Lots of private schools make you pay more like 80% or 75% of the fees or offen no discount at all for teachers so it pays to shop around. The best set up we found was a teacher couple one at our school - the wife - so they had 3 children with only that 15% each to pay from age 3 to 13 and then they moved to the father's boarding school and again only paid the 15% poluys the family had free housing and board at the school too. if you cost that out 3 children x 3 - 18 school fees and housing for 20 years etc the parents' wages plus benefits do start to compare with many other professional jobs.

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