Despite what most people claim, most FIs are employees according to the HMRC:
Employed or self-employed?
Employee
If you can answer 'Yes' to all of the following questions, you are probably an employee.
* Do you have to do the work yourself?
* Can someone tell you at any time what to do, where to carry out the work or when and how to do it?
* Do you work a set amount of hours?
* Can someone move you from task to task?
* Are you paid by the hour, week, or month?
* Can you get overtime pay or bonus payment?
Self-employed
If you can answer 'Yes' to all of the following questions, it will usually mean you are self-employed.
* Can you hire someone to do the work for you or engage helpers at your own expense?
* Do you risk your own money?
* Do you provide the main items of equipment you need to do your job, not just the small tools many employees provide for themselves?
* Do you agree to do a job for a fixed price regardless of how long the job may take?
* Can you decide what work to do, how and when to do the work and where to provide the services?
* Do you regularly work for a number of different people?
* Do you have to correct unsatisfactory work in your own time and at your own expense?
(I think the last one's great - if the student doesn't do well in PFLs, you take him home for the weekend, and keep on going until he gets it!)
HMRC give a good overview to self employment
here
I think the worst case that will happen if you think that you are self-employed and HMRC decide that you are not, is that you will not be able to offset costs (other than the industry agreed amount of £950) and the flying club will have to pay your PAYE and employers NI.
In reality you'll probably get away with it, but if they do decide to investigate it is an extra hassle to worry about (known from experience!)
Throws open for discussion!!