Back to school: an independent school’s (legal) checklist

Terms and Conditions

• Ensure your terms and conditions and contractual documents are all up to date, still accurately reflect your processes and procedures, and include everything which has been agreed between the school and the parents. Did any issues arise during the last academic year which mean your terms and conditions need to be reviewed and updated? Are any new contractual documents required?
• Check any updated terms and conditions and contractual documents have been correctly incorporated into the agreement between the school and the parents. This is important as the contract between the school and parents could be in place for over 5 years.
• Have you considered the implications of the introduction of VAT on independent school fees? On 29 July 2024, the Chancellor announced that as of 1 January 2025, all education services and vocational training supplied by a private school, or a connected person, for a charge will be subject to VAT at 20%.  This includes fees invoiced or paid on or after 29 July 2024 where those fees relate to education services provided after 1 January 2025. In respect of terms and conditions, in general, unless otherwise stated, the amount payable for goods or services will be regarded as being inclusive of any VAT chargeable. Schools will now need to include wording to permit the charging of VAT in addition to the stated fee.

School leavers

• If a parent wishes to remove a child from the school, check your terms and conditions to ensure the correct notice period has been given, paying particular attention to the circumstances of the removal. Your terms and conditions may require different notice periods for those pupils who are due to take up a place this September compared to students in other year groups.
• Check parents have settled the fees due in advance for the new term and/or that all leaver invoices from last year have been settled in full.
• In the event that invoices are unpaid, establish as soon as possible the reason behind the non-payment. If the reason for non-payment is because payment is disputed, establish why and consider whether a meeting between the school and parents could resolve the dispute.
• If invoices are unpaid, consider whether a repayment plan is appropriate. If a repayment plan is needed its terms will need to be recorded in writing and ideally in a formal acknowledgment of debt and repayment agreement.
• If unpaid invoices cannot be resolved consideration may need to be given to whether a pupil will be allowed to return for the new academic year, bearing in mind the notice the school will need to give to parents in these circumstances and the interests of the individual pupil involved.

Terminating and entering into new contracts with third parties

• Ensure you are aware of all contracts which are in place with third parties. Have you entered into new contracts with providers for the new academic year? Do you know what service/s you will be expecting each of those providers to do during the next 12 months?
• Make sure you fully understand both parties’ duties under all contracts with third parties, i.e. what the contract will deliver, the school’s obligations under the contract, what will happen in default, and how the contract can be terminated.
• Check the termination provisions of any contracts/agreements you are considering terminating as early as possible. To ensure a valid termination notice has been prepared, consider what notice is required, how the notice period is calculated and how the termination notice must be served.
• Be prepared for the consequences if you terminate a contract, i.e. has an alternative contractor been sourced, has the transition been agreed, and how will existing relationships be affected.
• If you are entering into new contracts consider, who are you contracting with and key clauses and terms, such as price, payment, termination and renewal terms. Check the language is clear and unambiguous and make a note of important dates and deadlines.

Our Disputes team regularly works with independent schools seeking to resolve a variety of issues, from supplier disputes to tackling unpaid fees. Our Corporate & Commercial team can also help with drafting contracts and terms and conditions. If you need help, please get in touch.