Hi there,
I voluntary registered for VAT from the outset of my PPL training,
you are required to provide evidence that you intend to trade in your own right i.e self employed (not become a PAYE employee) once quailfied as a flight instructor/commercial pilot.
I provided a "business overview" rather than a full business plan which was about 3 or 4 pages long and provided a background to the industry, my place within it, how I would be charging VAT to my customers etc etc.
however my voluntary regsitration was however refused on the basis that I had not provided enough evidence of "intent to trade " by an inspector who when I phoned her to chat about the reasons was particularly abrupt and unhelpful.
at this point I hired professional help who after a delay and appeal to the controller of that VAT unit, succesfully got my registration accepted.
I therefore got all the VAT back on all the PPL, Hourbuilding and CPL training, Instructor course etc, however I was advised that there is a quid pro quo.
i.e. they expect you to charge VAT to your customers (e.g. the flight school) and pass back this VAT to the customs and excise. this makes no difference to the flight school as they claim it back.
but it could be an issue for you if you 1) get a salaried job with a flight school and therefore dont charge VAT or maybe 2) you piss of to the north sea or something and therefore again are not trading as they expected.
I believe anecdotally that if you have claimed all that money back which could be £10k or so these days, that you may not be off the hook with customs and excise until they have recieved at least the equivalent amount back from you which may take you a number of years depending on your work rate. and you may be liable for the shortfall if you never get there.
this is no problem for me as I have paid them back far more now than I reclaimed from them, but potentially this could be an issue for new starters.
so the bottom line is be careful out there and get professional help
regards
CF