Kirstey, based on the facts as you state them, you are indeed being incorrectly over double charged the VAT uplift, and the club may therefore be keeping 17.5% profit on the landing fees; not illegal by any means, but if they say they are only passing on their costs...... It is a common VAT mistake that is sometimes made innocently .... and sometimes not. Julian, no doubt you come under the former! I'd rather talk flying anytime than talk VAT, but here goes ..... (hope no-one objects, everyone hates VAT ... don't they?)A=Airport C=Club P=Pilot HMCE=VAT man
Correct process:
A bills C £100+£17.50 VAT = £117.50
and pays HMCE £17.50 Output tax
C pays A £117.50 and reclaims Input tax of £17.50 from HMCE leaving net cost £100.
C bills P(who pays)£100+£17.50=£117.50
C pays HMCE £17.50 (Output tax)
C pays £100 net/receives £100 net = NIL
P pays £117.50
Incorrect process:
A bills C £100+£17.50 VAT = £117.50
and pays HMCE £17.50 Output tax
C pays A £117.50 and reclaims Input tax £17.50 from HMCE leaving net cost £100.
C bills P(who pays)£117.50+£20.56 VAT=£138.06
C pays HMCE £20.56 (Output tax)
C pays £100 net / receives £117.50 net and therefore retains a net £17.50
P pays £138.06 ie £20.56 too much
In this example the VAT documentation would all be OK, the retained £17.50 would in fact not be VAT, but simply a profit or mark-up.
Hope that all formats OK in wide screen. Note that I used £100 landing fee to keep the maths easy, things aren't that bad yet!
Good luck to you Kirstey, flying is expensive, but worth it (IMHO).