Different topic from the usual Covid-19 senarios.
What are the tax options when a teacher in a school where their own child attends wants to receive a discount or subsiby of their child school fees? I am wanting to understand from both the Teachers PAYE and Schools PAYE and Corporation Tax implications (the school is a private Ltd company).
Any thoughts would be appreciated.
Replies (7)
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https://johnstoncarmichael.com/documents/general/Independent_Schools_New...
There is a useful snip about usually acceptable discounting in the part mentioning salary sacrifice. (85%)
Whilst I have not used JC re this area of tax I have/do use them for other tax planning and have been satisfied with their advice; they are the largest independent firm in Scotland.
Dug has already mentioned that idea. In such cases, s203A ITEPA removes the tax charge on the BIK and substitutes a tax charge on the salary that's been given up for the privilege of receiving the discount.
That's a simplistic statement. But if you are basing your thinking on internet forums, simplistic is the best you are going to get. Much more sensible to take rounded advice specific to your situation that you (/the school) pays for and for which you can hold the advisor to account.