MH - your situation appears to be precisely what IR35 entails: largely working for one company as a contractor, and that contractor thus avoiding NI.
Companies are very cheap to set up - it is the VAT saving that is of question, not the tax savings against training materials - another matter entirely!
No, I pay NI, both as self employed contractor and employed peron. If your turnover is very small you can apply for an exemption to Class 2 NI, but I would think a Brookfield contract (eg) would be above the threshold for this.
Also, I thought this thread was about tax relief in general, not just VAT, although it is true that I was talking about income tax, or tax on profit. Perhaps I am mistaken. In addition, I was talking about training services from a Flying School, to renew ratings on my license, not training materials.
Alhough I do have an income from employment, since my self employed earnings are very low, I think the example stands for those who do not: the costs of training can be set against the profits of a sole trader in their balance sheet and tax return, just like a Corgi registered plumber would put the cost of renewing his annual Corgi certificate against his profit. Thus he reduces his tax liability due to training costs, so to answer the thread title, yes it is possible to claim tax back, but not when employed.
As to setting up a limited company, whilst, yes, the cost of actually buying a registered company number is small, I was advised that the accounting process is not such that you can do your own balance sheets, end of year accounts, and tax returns, therefore adding accountancy fees, which I do not have currently. Also you have to have (and in theory, pay) company directors and a company secretary. All of this sounded a bit complicated for someone who has only one bill (mostly) to send out each month to one client, so sole trader was the way forward for me. Also, if you are claiming back VAT, then by default you are requied to charge VAT on your services (you must anyway once your turnover is above a certain figure (is it around £60k - I don't know the latest figures?) which means you'll be doing a VAT return (whether sole trader or partnership, or registered company) every 3 months - not a lot of joy!
I don't know but I would suggest that a self employed contract Pilot working for one customer, or agency, is in a similar position to me, and sole trader is a lot easier and less complicated.