Welcome to the ISBA Conference edition of our Schools Briefing for independent schools, where we provide updates and insights on accounting, tax, reporting and governance for school Bursars and Governors.
To begin, Jane Askew, Partner and Head of Education, shares the results of the Independent Schools Management Survey. The 2024/25 year presented significant challenges for schools with cost pressures remaining elevated and the downward trend in pupil numbers has persisted. Whilst the current environment is challenging, there may be opportunities for schools to take informed, pro active steps in response.
Phil Salmon, Partner and Co-Head of VAT, shares his observations on recent VAT developments. He looks at a recent First-tier Tax Tribunal case and the potential impact for independent schools. Phil then goes on to consider HMRC’s current position on Fees in Advance based on responses to VAT reclaims made by schools.
Our first guest author, Dale Walmsley, Partner and Head of Public Service Pensions at First Actuarial, considers whether there are early signs of a potential reduction in future TPS contribution rates. Dale explores why a reduction may be possible and what independent schools should be doing now to prepare.
Louise Veragoo, Social Purpose Direct Tax Director, outlines the key direct tax considerations when operating overseas. As some schools consider the benefits of operating outside of the UK for the first time to explore new opportunities, Louise reminds us of the key questions that any school should be asking in advance of operating overseas to avoid unexpected tax liabilities.
Our second guest authors, Stephen Ravenscroft and Kenjo Batchelor, partners at Stone King, share some key governance lessons that independent school groups can learn from multi-academy trusts (MATs). From their significant experience of working with the development and growth of large MATs, they share some lessons learned and how they may be applied to independent schools.
Andrew Roberts, Director in our Independent Schools Team, reflects on the modern evolution of governance in an increasingly digital world. Andrew suggests that changes in the political and economic environment requires a shift from reactive problem solving to proactive strategies to engage with digital innovation.
Nick Bustin, Employment Tax Director, considers the changes in mandatory payrolling of benefits that will take effect from April 2027. Nick provides a detailed overview of the changes, their specific implications for independent schools and the key steps schools should take to prepare.
Finally, Dan Lennox, Senior Manager in our Independent Schools Team, provides a comprehensive guide to the Charity Commission’s CC8 guidance on Internal Financial Controls for Charities. Dan explains why the CC8 checklist is an essential tool and that all schools should consider regularly to protect the school’s assets, its reputation and its ability to continue delivering a world-class education.
I hope you find this edition informative and the articles thought-provoking. If you have any questions about the topics covered, please do not hesitate to reach out to the authors, your usual HaysMac contact, or myself for further information and guidance.
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