We would all like the best for our children, and that will often include the costs of private education. Whilst parents are generally aware that school and university fees can represent the single greatest cost of being a parent, they may not have quantified the likely cost or thought about how they are going to fund it.
At Gee 7 we have considerable experience in assisting in the negotiation of school fees. This will involve generic advice on the availability of scholarships and bursaries and the best manner in which to present your case to your chosen school. This advice can in itself be worth it's weight in gold – leading to substantial savings in the fees paid.
Once the likely fees are determined we will then discuss strategies for funding. We will work with you to tailor a suitable strategy for you and your family.
Tax Free Funds
One of the most effective strategies for school fees planning is to plan early as this enables the biggest potential to accumulate tax free funds. In practice, however, this may not be possible as when your children arrive, family income may reduce and at the same time often becomes subject to extra demands. In these circumstances, Gee 7 can design a plan that spreads the cost beyond the schooling period to make the fees more affordable in terms of cash flow.
Wherever possible, funds are made available from equity in your property as this is the most efficient way to borrow capital. We can arrange a flexible mortgage that withdraws cash only when it is actually required to cover fees, thus minimising the overall cost.
Tax relief is not available on school fees directly, however investments and deposits can often be arranged so that the capital is invested in assets which do not produce any taxable income, or in assets that produce income which is partially exempt from tax.
School Fees Pension Plan
For those that qualify, our Pension Plan is often the best option. By extending the time you pay your school fees, you may, frequently without any extra monthly cost, build up a larger pension fund and pay off your fees. The additional tax relief gained can often be more than the original school fees!
You can take a substantial part of your pension as cash at the age of 55 even if you don't want to draw income at that time. You may also continue to build up your pension fund after the withdrawal and take further cash payments.