How does it work?

We are sure you will be somewhat bemused as soon as somebody suggests they can save you thousands of pounds of school fees or university costs – sometimes without any regular outlay from your income.

• Where is the catch?
• Would my money be safe?
• It sounds far too good to be true
• Nothing in this life is free.
• “Up to” could mean most people save 10% rather than 50% or 100%

We have called the process “The Gateway to Education Financial Programme” and it is very advanced bespoke financial planning to achieve the maximum reduction on your school fees outlay.

Who provides the advice?

First of all education-fees.co.uk does not give the advice to you because we are not authorised for individual financial advice by the Financial Services Authority. We are only permitted to write about finance in “generic terms” So, we have set up introductory arrangements with a nationwide network of Independent Financial Advisers, who are all FSA authorised - more than 50 advisers trained in school fees planning and the use of the Gateway to Education Programme. We have specially selected these firms for their professionalism and expertise. Some firms are associated with Accountants. Others have specialist tax planning departments.

How does the product work?

There is no single investment or loan or product or tax planning technique. Because it is “independent and impartial advice”, each arrangement is bespoke to your circumstances. More than 5 advanced planning methods have been constructed, each of which aims to achieve more than 50% fees reductions for higher rate taxpayers (generally parents earning more than £40,000 per annum). Furthermore, some of the current Programmes aim to achieve much higher reductions than 50% – but you should be aware that the higher reduction methodologies may only be suited to parents happy to follow higher risk strategies using “alternative asset investments”. The local adviser will identify if one or more techniques are suited to your personal circumstances and then you have to agree that you both fully understand it and are comfortable with it.

What do you mean by “Alternative Asset Investments”?

The financial adviser can of course assist you in investing in conventional products like ISAs and managed equity funds. The problem is that school fees are inflating faster than the net yields on many of these products, such that saving in advance for school fees does not even permit you to stand still in real money terms. For this reason, some of our financial advisers have access to Alternative Assets, including Foreign Exchange Hedge Funds, Traded Endowments and Closed End Property Funds. These investments have the potential to yield considerably more than the school fees inflation rate, but of course you must talk to the adviser for a discussion on suitability to your circumstances.

Can I get tax relief on education fees?

The official answer is NO! The Government does not allow relief of tax on school fees and even a change of Government is highly unlikely to change this. However, firstly there are certain circumstances where owners of companies might be able to get tax relief on education expenses. Secondly, there are tax reliefs on many other expenditures such as pension contributions, which can be a route to fund school fees for some parents. Thirdly children have their own tax concessions on investments in their own name. Fourthly some of the asset classes being used are currently tax exempt on gains. Fifthly, some assets can be eligible for substantial tax write-offs. Sixthly, the adviser will consider how to avoid Inheritance Tax on the arrangements. Thus, you can begin to understand how the adviser examines your circumstances to put together a bespoke Plan   

The advanced planning techniques involve the use of a variety of financial institutions, and the adviser will discuss with you their financial strength and security. If you prefer not to deal with a particular institution, he will endeavour to substitute alternatives.

So, where is the catch?

• You have to be UK resident or a UK citizen.
• Your “problem” of fees liability must be at least £75,000 over your children’s schooling to make it worth doing
• Most Programmes really need a period of at least 10 years to work. However, given that most children will carry on to university, it does also apply to most parents of teenagers currently in private education.
• The Programmes are not suited to everyone. You need to be of the right risk and financial profile. Some parents decide to do “part solutions” to minimise their risk exposure.
• All investment and lending solutions carry a “risk” and you need to be comfortable with it. The adviser can discuss equities, property or non-stockmarket linked investments, as you prefer. If you choose a technique involving borrowing, and do not keep up repayments on the loan, the lender would claim against your assets. The IFA will explain the issues in detail and with relevance to your circumstances. 
• Some of the Programmes work best for higher rate taxpayers who have not used up their annual CGT exemptions, but it should still produce a benefit for others.

We encourage you to fill in an enquiry form, because the initial consultation is free and without obligation. It will cost you nothing to find out what you could save.