Paying private school fees tax efficiently

lucybrown162

Hi
I am looking to send my daughter to private school when she reaches high school age and am trying to work out the most tax efficient way of doing this.
I am a director shareholder of a business and I receive a salary as well as a dividend, which changes annually based on profits.
I believe that I would possibly be able to transfer a part of my shareholding to my daughter subject to the other director shareholders approving this, which would then mean that she would receive dividend on them which could then be used to pay the school fees.
Are there any bank accounts for minors which would allow cheque or online payments to be made, or is there a way of getting a joint account with a minor?
Are there any other good ways of making school fees work in a tax efficient way to reduce the burden? 

[Deleted User]

Have a read of this regarding shareholders under the age of 18 (under parental settlements)

https://sg-accounting.co.uk/blog/things-to-consider-when-making-children-shareholders/

Grumpy_chap

lucybrown162 said:

Hi
I am looking to send my daughter to private school when she reaches high school age and am trying to work out the most tax efficient way of doing this.
I am a director shareholder of a business and I receive a salary as well as a dividend, which changes annually based on profits.
I believe that I would possibly be able to transfer a part of my shareholding to my daughter subject to the other director shareholders approving this, which would then mean that she would receive dividend on them which could then be used to pay the school fees.
Are there any bank accounts for minors which would allow cheque or online payments to be made, or is there a way of getting a joint account with a minor?
Are there any other good ways of making school fees work in a tax efficient way to reduce the burden? 

Under age 18, the dividend arising from your daughter's shareholding will be taxed as though it is your income.

The resultant residue will be your daughter's asset and will need to be managed in trust for your daughter with her best interests as primary consideration.  That may not be school fees.

Your daughter may not be happy with the way the business is being run and may demand changes, or may vote for a different dividend level.  You mention other director shareholders (in plural) - how many are there?  Major shareholders are not entirely without obligations to minor shareholders.

csgohan4

I would take care under this arrangement. Settlement legislation may kick in here

Always approach things , if HMRC came knocking will they find anything they can take you to the cleaners for

School fees will not be a company expense if your wondering as well