Company funded training and hour building

[whirleybloke]

Maybe this is better asked of an accountant, but here goes..

I've got my PPL(H) in 1999, but haven't flown for 6 years cos I ran out of money. I've got about 150 hours on R22s and want to get flying again. I now understand what's needed to get current again, but the question is about paying for training and hour building time.

Does anyone know if it's possible for my company to pay for this to save a bit on the tax?

Thanks

[206 jock]

It's possible for sure and I'm equally sure that the helo company will be pleased to issue you a VAT invoice. The only question is whether the tax man takes the view that your paying for the hire through the company is relevant.

For example, if you are hiring a helicopter to attend a business meeting (or a series of business meetings), they will probably grill you, but let it pass. If you are taking a customer out for lunch, they will probably let it pass (but be prepared to provide full details of who/when/why). If you're taking the missus out to lunch (assuming you can't call it a shareholder meeting) or just poncing about on your own, they will note that down and charge you with taking a benefit in kind and fine you for not disclosing.

Generally 'tax man' and 'helicopter' are not good bedfellows. They were all over me like a rash when they found out about my machine. Fortunately I was ok there, but they did go through all my books with a fine toothcomb and got me on a number of other areas. And be very careful if you want to buy a helo through your company.......that's a whole different thread.

[whirleybloke]

I'm sort of hoping to be able to do it under the guise of re-training (a bit like GNVQ used to be) to get enough hours to eventually do the instructor course. It's a bit of a long shot, but it does reduce the money coming out of my pocket.

[Whirlygig]

Does your company need and require a helicopter pilot? I'm guessing "no" which is likely to be the response of the tax man as well.

Of course your company can pay for your training but expect to be taxed on it as a benefit in kind. And the amount on which you would be taxed would include VAT. And your company would have to pay Class 1A National Insurance (at 12..8%).

If you are the sole shareholder, then there's no problem. If there are other shareholders, they may well have something to say about it as you would effectively be giving yourself a hefty payrise..

Cheers

Whirls