Business Savvy Trainee Pilots... Integrated Course Cost and VAT!

[350Z]

Hey guys, a bit of a shot in the dark but keen to hear peoples thoughts on this!

Integrated course fee- £70k inc VAT approx
Chance of FO job after- Low
Cost of FI- Few grand (unsure)
Instructors salary- £16k (not much!)

Idea- Register yourself as 'self employed' e.g. 350Z Flight Instruction or something, freelance as a flight instructor and become VAT Registered (not sure if this line of work permits) then claim back all of the VAT on the training costs!? Could also offset the cost against tax as an expense.

Is this idea stupid? lol, probably but keen to here thoughts! Why the hell is VAT charged on gaining an ATPL anyways!

...Discuss :)

[EK4457]

Another old chestnut. And one that refuses to be cracked. A nice idea, but I think the tax man has all the angles covered.

Admittedly, I am no tax genius (no bad thing!), but I remember having this coversation many times and it can't be done.

I'll leave the floor open to a tax accountant to confirm.....

EK

[MIKECR]

Commercial flight training is not tax exempt. The tax man closed that loophole a long time ago. Sorry to be the barer of bad news

[UAV689]

could be wrong but dont you have to be turning over 60k year or more to be vat regestered? never gonna get that being an FI!!

[preduk]

No, if you have a turnover of 60K and above you NEED to register for VAT, however you can register voluntarily if you wish at an earlier stage.

[juststartin]

I am self employed, and am registered with HMRC under my name and not a business name.

When contacting them for an enquiry about changing my business I was told I wouldnt need to because as the VAT registration was in my name I could just claim any VAT paid in my name as normal. I for just about anything I get charged VAT on, provided I can say it is in someway connected to my job as a courier..

You CHARGE Vat on services rendered, ie as im a courier, a delivery job ive done, and I CLAIM Vat back on services that I have used, ie someone invoicing me, the difference goes to her majesty's coffers - I dont really see how flight costs would fit in here

I would try contacting HMRC for clarification but I think unless you have a business or are self employed with a trade (not just self employed because you can etc), I think you would fall at the first hurdle of registration!

www.hmrc.gov.uk (http://www.hmrc.gov.uk)

regards

[350Z]

Hmm interesting stuff- I may pursue further as 17.5% discount is a hell of a chunk! lol

Ta for the input people

[Whirlygig]

But if you become an employee with an airline after getting your CPL, you would have to pay the VAT back.

I can be done but you have to be genuinely self-employed. Go and see a firm of accountants.

Cheers

Whirls