You may wish to read the decision made by the UK Special Commissioner for Income Tax Decisions; Mal Scaffolding v Inland Revenue & Customs, 26th March 2006. It is quite a long judgement but would suggest that the flying club mentioned above will be successful in any appeal against their local tax office decision to treat flying instructors as employees. The case has many simularities to how we work as Flying Instructors.
http://www.bailii.org/cgi-bin/markup...ing&method=all Whirlybird your comments please.