CISR12100 - The Scheme: contractors: schools
Under S36 of the School Standards and Framework Act 1998, a school's governing body is a body corporate, a legal entity. However in spending its delegated budget, the governing body does so as the agent of the Local Education Authority (LEA).
Before 1999-2000, Foundation schools (then known as Grant Maintained schools), were financed directly from the Department for Education and Employment (DfEE) and payments by those schools were not caught by the Scheme because the DfEE itself was not defined as a contractor by ICTA88/S560.
Under funding arrangements set out at Section 49(5)(b) of the School Standards and Framework Act 1998, the budget shares of all schools, including foundation schools, remain the property of the maintaining Local Education Authority until spent.
However, with the start of the new Scheme on 6 April 2007, SI2005/2045 reg 21. specifically excludes from the Scheme any payments made for construction operations by the governing body or head teacher of a maintained school. As such, the Scheme should not be operated in respect of such payments.
For CIS purposes, private schools are treated in the same way as any other deemed contractor caught by FA04/s59 (1)(l). (See CISR12050 for more details on deemed contractors).
Voluntary aided (VA) schools
Voluntary Aided Schools are not treated as contractors for the purposes of FA04/s59 (1)(l) and do not have to operate the Scheme.
‘Free’ schools were set up by the Academies Act 2010. They are not treated as contractors for the purposes of FA04/s59 (1)(l) and do not have to operate the Scheme as they hold charitable status and can therefore take advantage of SI2005/reg 24.