11 March 2024
Welcome to our Schools Briefing, where we provide updates and insights on accounting, tax, reporting and governance for school bursars and governors.
This edition of our schools briefing looks at some political and environmental considerations which may be a concern for independent schools. Phil Salmon, Partner and Co-Head of VAT, sets out some things for independent schools to consider in the event Labour form the next Government and introduce VAT on school fees.
Andrew Roberts, Senior Manager, explores how schools are continuing to both plan and construct new build projects. Despite current challenges and uncertainties, we are seeing a continuation of capital projects with an increased focus on sustainability. Andrew goes on to explore carbon reduction considerations and why it is important.
With the continuing theme of uncertainty, our first guest author Daniel Jacklin, Corporate Relationship Director, Education at NatWest Group, shares the key considerations for an independent school when borrowing. He goes on to highlight what information a lender might ask for regarding the project, and what they may need the school to provide to secure funds.
Given the current economic climate, schools are seeking ways to bolster and diversify their income streams. Ramzan Khan, Senior Manager, looks at various ways schools can do this
across letting of school grounds, hiring out theatres, and letting out event space for weddings, filming and photography. He explores how the VAT treatment can often differ depending on the type of supply and how the many variations can be navigated.
After the latest announcement from HMRC regarding payrolling of benefits in kind, Nick Bustin, Employment Tax Director, explains what this will mean for schools and how they should prepare ahead of April 2026. He goes on to shed further light on past experiences, and what employers will need to consider.
Finally, Louise Veragoo, Not for Profit Tax Director, shares a Corporation Tax update based on the recent changes to legislation. This includes the amount of Corporation Tax that will have to be paid by companies, the impact on the schools’ sector and touches on interest rates which furthers the importance of timely payments.
I hope you enjoy this edition and find these articles of interest.
Do feel free to let the authors, me or your regular contact know if you have any questions concerning the matters discussed.