Again the caveot that I'm not familiar with UK rules for VAT, but I don't see why having a US company or trust would necessarly stop you registering for VAT in the UK. In fact if it could be shown that the company was operating a VATable activity, and it's turnover was over the limits, I think it would be obliged to registrer.
Haveing said that, it would still have to charge VAT on it's "Sales" of flying hours.
If it's turnover was below the limits, and it decided to volunterly register, I'm not sure how long it would have to remain registered for, as I'm not familiar with the UK legislation.
There are some UK based accountants on this board, and I'm sure they can comment on this better than I.
In any case the figures quoted in the first post will have to be increased by 17.5% either in the initial outlay, or taken account of in the hourly rate. The VAT will have to be paid somewhere.
If UK legislation is similar to Irish, then IO540 is quite correct in what he is saying that some commerical activity must be involved. A company which simply acts as a way of splitting up the costs, is not commerical activity, and therefore not a vatable activity. Incidently if my memory is correct, the European leglisation is not as restrictive, and simply requires that an "economic activity" is carried on.
dp