Concerned about increasing school fees?—A guide for separating parents and what to do if you can’t agree
Partner Rachel Donald discusses the challenges divorcing or separating parents may face in light of the upcoming VAT changes on private school fees and how family lawyers can help resolve disputes over their children's education.
VAT changes on private school fees
As we enter another academic year, many parents will be naturally apprehensive about the changes afoot to those in private education following a change in government. The tax breaks for private school will end from the start of 2025; this will have a significant financial impact on many families, now and in the future. The standard 20% VAT rate will be added to private school fees from 1 January 2025 which means any fees paid from 29 July 2024 relating to the term starting in January 2025 will be subject to VAT. This means private schools will need to put up their fees to meet these costs.
For many families who are going through divorce or separation with children in private education, this change will be significant and potentially will result in difficult decision regarding their children’s education. Many may need to consider changing school which in turn may lead to difficult decisions for parents.
What happens if you are unable to agree on these decisions?
If parents are unable to agree on their children’s education, it may be necessary to consult a family lawyer to help resolve this issue. Disputes relating to education may be complex and a number of issues might be at play. The first is often affordability. This may be particularly relevant in the coming months as the cost of private education rises. In this situation, it may be necessary for the parents to share their current financial circumstances, details of their income and monthly budgets, to establish whether it is financially affordable for the children to remain in their current school. The affordability question will need to be considered on a long term basis for the duration of their education to avoid disruption to a child’s education in the future, if this is deemed to be a disruptive factor. If it is established that it is affordable now and in the future, the next question, which will be the primary focus at that stage, will be the best interests for the child, having regard to the welfare checklist.
Parents who find themselves in disagreement of this issue will need to first attend mediation to see if they are able to reach an agreement in this forum. If this is not possible, there are many other alternatives to court, to include early neutral evaluation and arbitration. A last resort would be to apply the family court to determine this issue, but that should only be done if there is no engagement from parents.
Rachel Donald is in the family and children team, advising national and international clients on all aspects of family law including divorce and separation, resolving arrangements for children as well as disputes concerning child maintenance.
Get in touch
If you would like to speak with a member of the team you can contact our family and children solicitors by email, by telephone on +44 (0)20 3826 7520 or complete our enquiry form.