PPRuNe Forums - View Single Post - Can you reclaim the VAT and/or tax on training costs?
Old 8th Feb 2006, 09:40
  #50 (permalink)  
Whirlygig

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Join Date: Feb 2003
Location: Propping up bars in the Lands of D H Lawrence and Bishop Bonner
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Is this all a non-starter? Should I just crack on and accept this is going to cost a lot of money!

No, it's not a non-starter and it is possible. HM Revenue & Customs are not THAT scary; they are usually very helpful.

Is this an easy enough process or should I employ an accountant?
Depends! Do you feel happy filling in your own self-assessment tax return? If so, then a VAT application form shouldn't be too much of a problem. You have to come up with a business plan. If you employ an accountant, just make sure they don't charge more than the VAT reclaimed! You should be able to find one who will give you the advice on initial set-up and then leave it to you. There are other implications as well such as self-employed status for income tax and whether you feel you ought to set up a Limited Company and invoice through that if your employment/self-employed status is in doubt.


If I do claim VAT back and then don’t work freelance…what happens?
You pay it back. Possibly with interest. If you go North-Sea, you need to find out how many freelancers there are there; I thought most were employees. Freelancers tend to be more instructors (from my understanding although I'm sure someone will correct me!)


G-Mady, it's no extra hassle for a VAT-registered operator to reclaim the VAT you have charged. No hassle at all. A certain "HERB" software that I often recommend, will do it automatically.

Cheers

Whirls
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