Noggin
I`d like to point out that the Inland Revenue is not out to shut businesses down. If they do, it is them who lose out! They are merely trying to insure that the minimum wage law is upheld. Remember that employers are legally obliged to pay minimum wage to all their employees.
I am currenly a CFI (of a small flying school), and part of my responsibilities include negotiating and setting Instructor rates of pay in co-operation with the Managing Director. All of our full time PPL Instructors are paid a minimum of £1250+ per month. By offering salaries like this, I have no doubt (from previous exparience at other flying schools) that the standard of Instruction improves drastically, as does moral. Offering good salaries also attracts more experienced, and better qualified instructors. This leads to a more pleasant working environment where both staff and students benefit.
In addition to this when instructors are salaried, they take less risks than instructors who are paid hourly who may fly in either adverse conditions, or in weather where there is no benefit for the student, for the sake of survival! Instructors are also more likely to stay with the company longer, rather than being in a mad hurry to go off to airlines to help pay back big loans. Surely this is a good thing for the industry as a whole?
Finally, I can`t see how paying instructors a sensible wage will put most flying schools under financial strain.
Stand up for your legal rights!
MP