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.
We begin with a HaysMac team update. As part of the refreshed Social Purpose strategy, Tracey Young will hand the reins of the Education team to Jane Askew, Partner, after nearly 10 years at the helm. Under Tracey’s leadership, the Education sector at HaysMac has seen significant expansion, thriving even through challenging periods including the introduction of VAT on School Fees. This growth is a testament to Tracey’s vision and resilience. Moving forward, Tracey will transition to a Senior Partner role within the Education team, continuing to contribute to the sector’s ongoing development and success.
Stepping into her new role, Jane Askew, Partner and Head of Education shares the results of the Independent Schools Management Survey 2025. Schools are continuing to face financial pressures with the implementation of VAT on school fees now in full effect. Unsurprisingly, costs continued to rise due to consistently high inflation. Interesting stats have been shared throughout the survey with a slight decline in overall pupil numbers, and a notable 12% of schools implementing fee increases exceeding 7% in 2024/25.
While many schools are becoming increasingly familiar with the basic principles of VAT recovery and partial exemption, the real challenges often lie in the finer details of the rules and their practical application. In this article, Phil Salmon, Partner and Co-Head of VAT, goes beyond the standard guidance to explore some of the more nuanced and often overlooked aspects of the legislation from business/non-business apportionment to the implications of the standard method over-ride, highlighting key areas schools should be aware of to ensure compliance and optimise VAT recovery.
As part of the Government’s efforts to modernise the UK tax system, schools will soon be required to adopt a new approach to how employee benefits are reported and taxed. Nick Bustin, Employment Tax Director, shares guidance for payrolling of benefits in kind which will become mandatory from April 2027. This development will have important operational and financial implications for schools. Nick goes on to outline the recent HMRC announcement, what it means for schools, and the key steps governors should ensure are being taken now to prepare for the changes ahead.
In our next article, Jackson Berry, Senior Manager discusses the significant changes which are coming into effect with the introduction of the updated Charities SORP set to take effect from January 2026. Developed to align with revised FRS 102 requirements, the new SORP introduces a three-tiered reporting framework. He explores what these updates mean for schools, the areas that may require additional planning, and how governing boards can begin preparing now.
Finally, the introduction of the UK’s “Reporting Rules for Digital Platforms” marks a significant step toward greater tax transparency in the digital economy. The regulations have broader implications, including those for independent schools and charities that facilitate certain types of online transactions. Jamie Whale, Senior Manager looks at what constitutes a digital platform, the reporting obligations under the new rules, and the practical steps schools should take to assess their responsibilities and ensure compliance.
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.
