Private school parents face paying as much as £107,000 extra over their child’s school career as a result of VAT on school fees taking effect from the start of next year, analysis* by leading finance company Premium Credit shows.

With FCA-regulated firms continuing to receive invoices for this year’s FCA fees and levies, Premium Credit is offering businesses a finance facility to spread the cost over convenient monthly repayments rather than having to pay in one lump sum.

Some 36% of accountants and financial advisers have seen their cashflow worsen over the past 12 months, compared to 29% who say it has improved. One in three (33%) expect their cashflow to deteriorate over the next year, compared to 31% who expect it to improve. This is according to a new study* from Premium Credit, which through its Fee Plan enables accountants and advisers’ clients to spread the cost of fees they owe to them over a number of monthly payments.

In a new study from Premium Credit, a leading provider of finance for companies and business owners tax bills, 54% of accountants and financial advisers cite the cost of living crisis as one of the main three reasons why clients are struggling to pay their tax bills. This was followed by 50% who said clients have seen their revenue fall, and 49% who cited personal circumstances of clients such as divorce.

Private schools remain popular with parents in the face of rising costs but Labour’s plans to apply VAT to fees would make it unaffordable for many, new research1 from Premium Credit, a leading provider of finance for school fees, shows.

Premium Credit is offering an instalment solution for credit brokers’ customers needing to pay tax bills during the current self-assessment season.