Welcome to the Spring 2025 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.
The introduction of VAT on school fees has now become a reality, and as we navigate this change, we are confronted with the various challenges it presents.
To begin, Phil Salmon, Partner and Co-Head of VAT, shares a timely update on the implementation of VAT and key dates and deadlines every school needs to know. Highlighting important dates for your diary, Phil shares an overview of what needs to be declared and when. He goes on to share an insight into the Claimants’ pleadings in the Judicial Review concerning VAT on private schools, and the grounds for this case.
In an interview I speak with David Cole, Chief Operating Officer at the Sherborne Schools Group on the mergers of the schools into one group. As with any merger, there will be challenges to overcome and difficult decisions to make. David provides the thought process behind the merger, recalls the key challenges which were encountered and provides some top tips for any school considering a potential merger.
Louise Veragoo, Director, reminds us not to forget Corporation Tax when looking at the operation of a school group. Her article looks at some of the non-VAT considerations that should be on the agenda at this time to avoid unintentionally creating Corporation Tax issues.
Nick Bustin, Employment Tax Director, looks at other changes announced in the Autumn Budget which will have a direct impact on staffing costs in 2025. Nick explores how schools may look to mitigate the impact of the changes and whether consideration should be given to implementing or revisiting pension sacrifice arrangements which will help to maximise savings for schools.
Finally, Richard Weaver, Partner, shares expert tips on best practices for governing your trading subsidiaries and ensuring your organisation upholds strong governance standards.
I hope you enjoy this edition and find the articles both useful and of interest. If you have any questions regarding the matters discussed, please do not hesitate to reach out to the authors, myself, or your regular contact.
