Welcome to the Autumn 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.
With significant change happening across the sector over the last few years, it’s no surprise that strategy is high on the agenda for many schools. Jane Askew, Partner and Head of Education, talks about how financial modelling and due diligence can help guide those big strategic decisions. Jane shares practical tips on what to include in a financial model and how HaysMac can support schools through the process.
Following HMRC asking questions about Fees In Advance and sparking concerns for schools, Phil Salmon, Partner explores the implications of the recent Supreme Court ruling in the Prudential case, clarifying how “time of supply” rules apply and why this could support schools’ positions on pre-paid fees. Expert guidance is recommended if you’re contacted.
Our guest author, Max King, Managing Director at Rheo, makes a strong case against complacency and challenges the idea that high interest rates are a long-term investment strategy. In his article, he explores how segmenting reserves can bring strategic clarity, why it’s important to revisit your investment policy statement, and how to stay proactive to ensure your investments have purpose rather than relying on short-term comfort.
Louise Veragoo, Direct Tax Director, explores the hidden costs of Capital Gains Tax reform. With financial pressures still a major concern for schools, she examines how some of the proposed changes in the upcoming Budget could impact the sector. Louise also considers the practical and political challenges these reforms might bring, and what they could mean for the future of school funding.
In our next article, Sara Shrouti, Senior Manager, explains the upcoming changes to Companies House requirements around accounts filing. The article also includes information around Identity Verification and how it will impact independent schools.
Finally, HMRC has recently launched a programme of Structured Risk Reviews across the charity and not-for-profit sectors, including independent schools. Employment Tax Director, Nick Bustin, walks us through the process, from how an organisation is selected for review to understanding its scope and key focus areas, offering practical guidance to help schools prepare.
We hope you find this edition both informative and thought-provoking. If you have any questions about the topics covered, please feel free to reach out to the authors, your usual HaysMac contact, or me for further information and guidance.
