Saving for private school - financial advice

[Quirk1]

We have two kids, currently in state primary, and have decided to go private for secondary (3+ years from now). Does anyone have advice on saving for this? OH is a contractor, owns a private ltd company. He wonders whether there's a legitimate, tax-efficient way, to partially fund school fees out of the company? Some of his colleagues have spoken about something of the sort.

He needs to speak to a proper FSA.

Nothing springs to mind - how was he think school fees would feature in the company accounts, other than as a (taxable) benefit to him?

I don't think there is a legitimate way, though that doesn't mean there's things that others are doing!

You’d need to take proper advice, but there are several ways:

1 assign shares in your company to your children via relatives. School fees can be covered by dividend payments made to the child;
2 school fees payments can be factored into his renumeration package;
3 you could provide scholarships, grants, or bursaries to children attending private schools -incl your own;
4 pay school fees direct from the business using the director's loan account.

You used to be able to deduct school fees up to £2916 pa per director as childcare as long as the school invoiced the nominated director at the company for this amount, it may be this that your friend is referring to?. However, it is my understanding that these rules changed a couple of years back and you can no longer pay school fees directly like this anymore .