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Old 28th Jun 2006, 09:41   #81 (permalink)
 
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As a plank driver wanting to fly rotary again, I only yesterday spoke to my accountant re this very topic. Can I set myself up as a sole trader and claim the fees for my rotary instructor course against tax. Yes, without a doubt, was the reply.
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Old 14th Aug 2006, 13:04   #82 (permalink)
 
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Reclaiming VAT from flying training

Hi,
I'm just starting to hour build toward CPL & Instructor, thus spending alot of money!
I have heard of people claiming back VAT against flying training. I have spoken to a couple of accountants about this, and they are a little baffled and say it can't be done.
I thought I saw a thread about VAT on here a while ago, but can not find it now. Can anyone out there please advise on this matter, or even better recommend an accountant that knows how to sort this out?

Many thanks
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Old 14th Aug 2006, 13:50   #83 (permalink)
 
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Here's the thread :-
http://www.pprune.org/forums/showthread.php?t=198314

I know my accountant went on about the fact that a licence couldn't be shown as a benefit for employment or generating income - even though I explained the whole CPL/ATPL remuneration thing . . . think I need to change my accountant.
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Old 14th Aug 2006, 14:08   #84 (permalink)
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I successfully claimed my CPL here in Australia. You are able, as far as I understand, to claim payment made for any training in your relevant field as a deduction from your taxable income. Prior to my CPL training I was a tour guide/bus driver. After gaining my CPL I went to work for a company that did tourist flights and there you have it, I had paid for training in my relevant field! My accountant assured me it was all above board but I did bump into him several years later and he said he probably wouldn't do it again! I have related this story to many pilots over the years and am yet to meet another who successfully made a claim on his/her tax return. I trained in 1997.



CH
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Old 14th Aug 2006, 16:13   #85 (permalink)
 
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The rules re: VAT & tax may well vary from country to country. More than that, they might vary, in practice, depending upon which individual tax man was dealing with them.
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Old 14th Aug 2006, 16:44   #86 (permalink)
 
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Cool VAT

I registered to voluntary registered for VAT and claimed back my training expenses. a while ago know, I had t supply a letter from an employer to show
I had employment
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Old 14th Aug 2006, 17:02   #87 (permalink)
 
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Unless you know what your doing dont bother, I spoke to the VAT people and explained what i wanted to do and they were happy with that and sent me the forms which i filled in and returned. However, the forms are far from Black and white. I spent months being chased for the tax i intended to claim back with many letters informing me of the fines i would have to pay for not coughing up. Took me ages to explain it all and cancel what i'd started.
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Old 14th Aug 2006, 17:34   #88 (permalink)

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Quote:
Originally Posted by 2bart
I registered to voluntary registered for VAT and claimed back my training expenses. a while ago know, I had t supply a letter from an employer to show
I had employment
Not sure why you were asked to do that because the whole point of being registered for VAT is that you are self-employed and in business for yourself, not employed.

Cheers

Whirls
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Old 14th Aug 2006, 19:44   #89 (permalink)
 
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This was recently discussed here at length. Its about planks but the same rules apply.
http://www.pprune.org/forums/showthread.php?t=237958
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Old 14th Aug 2006, 20:34   #90 (permalink)
 
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Claiming back v.A.T

HI a coleague of mine registered for V.A.T. during his hour building and claimed back all of the V.A.T. on this. I must admit I didnt realise you could do it but he has and has had no further problems from the revenue. He told me they sent somebody out to interview him and that was it. Happy hour building
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Old 14th Aug 2006, 20:41   #91 (permalink)

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Just to make everyone aware - there were some other background issues with the thread link posted by muffin. This case has some unique "features" which I cannot divulge but please can everyone be aware that all cases are different and there is no substitute for some professional advice.

Cheers

Whirls
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Old 14th Aug 2006, 21:09   #92 (permalink)
 
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Quote:
Originally Posted by Capt Hollywood
I have related this story to many pilots over the years and am yet to meet another who successfully made a claim on his/her tax return. I trained in 1997.

CH
Pleased to meet you CH, I'm GB. You got your deduction allowed because I took the ATO to the Administrative Appeals Tribunal in 1989 for doing the same thing, and I won. The ATO reckoned I couldn't claim my flying training costs and I reckoned I could. They slugged me for the tax avoided, plus interest, plus penalty, and I had to pay whilst the appeal process was determined. There was a lot at stake because they tried to do me for 1990 as well, it involved alot of money. However we agreed beforehand that, as the elements of the two cases were the same, I would only run with the first year, and whatever the result of this case would be applied to the other.

The paperwork for the hearing was thicker than the flight manuals for the S76, B212 and B412 that I now fly, combined. To cut a long story short, I won, and they didn't take it further, so I got my money back plus interest within 2 weeks. They sure got a surprise when a young-buck wannabe helicopter pilot (as I was then) beat the might of the ATO. Best of all, they have never audited me in the years since.

So if we ever cross paths in the Qantas business lounge, I reckon you might shout me an ice cold Crown Lager or two. Any helicopter pilot can afford the prices in there, whatever predicament they might be facing with the ATO for filing a shonky tax return.
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Old 14th Aug 2006, 22:09   #93 (permalink)
 
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You can't con H.M.

I looked into this not to long ago. Here in the U.K. the tax law is quite clear, You can not claim back any training expenses that qualify you to progress. You can claim for training expenses that allow you to continue, for example changes in the law or safety regulations that require additional qualifications to be gained in order to continue in current position. So if your starting at the bottom the first thing you will be able to claim is your medical renewal.

I think you should get a t-shirt when you leave full time education in the U.K. with the words "Qualified to be Shafted" printed on it................... Oh would the last one who leaves please turn the light off.

After a full tax investigation going back 6 years, maybe I am just a little bitter !!
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Old 14th Aug 2006, 22:14   #94 (permalink)

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Income tax and VAT are separate taxes with separate rules. It IS possible to reclaim VAT on training on the basis that you are going to become freelance/self-employed however, claiming back the tax relief on training is a different matter.

The vehicle by which you do this needs to be carefully considered but. Setting up a limited company may not (note MAY not) be the best way.

Cheers

Whirls
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Old 15th Aug 2006, 05:10   #95 (permalink)
I'll get me coat......
 
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G'day GB,

Consider it my shout! Although I'm usually not permitted in the Qantas lounge as my better half works for Qantas and you can't go in there when you're on staff travel! But then who's complaining at 90% off the airfare!

CH
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Old 16th Aug 2006, 10:51   #96 (permalink)
 
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Threads Merged.
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Old 16th Aug 2006, 21:21   #97 (permalink)
 
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.... and therefore invisible to the next person who does a search on VAT and Training. Can't we do something about that ? If not, would it not be better to leave the threads separate ?
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Old 16th Aug 2006, 23:33   #98 (permalink)
 
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Quote:
and therefore invisible to the next person who does a search on VAT and Training

Sorry, I'm probably being slow (long day), but I don't understand what you mean. The search feature won't find anything shorter than 4-letter words so it won't find 'VAT' or 'V.A.T.'
There were VAT reclaim questions and answers dotted around the forum before the merging. So, to make it easier to find all the information, I merged it in one place - here.
Those who use 'reclaim' as a keyword will find it more quickly than those who use 'training', for obvious reasons. Using the 'search titles' option often saves time.
If people don't find it (or haven't looked) they're given the link

(It's also one of the topics listed in Training FAQ.)

I merge threads relating to the same subject so that we build up a database of information for easier reference. eg Numerous threads discussing the same helicopter type are now merged.
It's taken many many hours merging the threads on each type, and is an ongoing process, but we now have quite a few in our database.

Examples (not the full list):
Agusta 109
AB/AW139
AS350
AS355
AS365
Bell 206
Bell 407
Bell 412
Bell UH-1 Huey
Boeing AH-64 Apache
Boeing CH-47 Chinook
EC120
EC135
EC145
EC155
EH101 Merlin
Gazelle
Hughes/Schweizer 300
Hughes 500
MD Explorer
R22
R44
Sikorsky S-76
Sikorksy S-92
V-22 Osprey


Heliport
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Old 17th Aug 2006, 06:08   #99 (permalink)
 
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Apologies to you Heliport.

There used to be a problem searching merged threads - see here but when I tested it with a search for VAT I fell foul of the four character problem and assumed the problem was still there.

The search on merged threads does seem to work now. Belay that last post !

PS That's an excellent list of types covered. Maybe you could add it to the sticky thread ?
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Old 31st Jan 2007, 15:50   #100 (permalink)
 
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Offsetting VAT/Tax against training

Dear Rotorheads,

Nothing has come through searching threads so appreciate being pointed in the right direction or some help hints or PM's if required.

I'm doing my AS355 type rating/IR soon an wonder if there is anyway of offsetting the tax/vat on the course.

Thoughts at the moment are setting up my own limited company. That way when (or if !!) I get employment, whoever employs me will effectively employ my company.
This allows me to offset my training costs against future tax.....has anyone delt with this before ? , and would companies in the industry be willing to do this ?

2nd option is finding a heli company (not necessarily saying they will give me a job )to finance the course having already recieved a 20k cash bond from myself. As I go through training the company pays for the training through its accounts and then draws off the cash bond I supplied. At the end of the training the heli company can claim back the VAT (around the 3500) mark, take a 500 admin fee and pays me back the remaining balance of my cash bond + the VAT. This deals with VAT. My current belief is that this is not illegal at all.

If then the heli company decideds to employ me then my tax on my earnings can be offset by training cost (less the VAT now).

Hope that lot didnt sound too confusing !!!

It seems to be to a win win situation for a heli company. If they do not decided to employ me they still take a 500 fee for effectively a paperwork exercise.

Any thoughts please ?
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