PPRuNe Forums - View Single Post - Pilots self-employed for tax purposes.
View Single Post
Old 14th Sep 2009, 11:58
  #54 (permalink)  
Hasdrubal
 
Join Date: May 2009
Location: China
Posts: 35
Likes: 0
Received 0 Likes on 0 Posts
There is a legal distinction between you as a contractor flying for an airline or agency like BRK and you being an employee of a company which has a contract with an airline or agency.

Mr Brown will have his greedy little hands out for his cut of any money you receive from your employer, and if you live in the UK he doesn't care where you earned that money.

Therefore if you are a contractor with BRK and you get £100k form them then you will pay tax on £100k.

If you work for a company that has a contract with BRK and you have an employment contract with the company and you will pay tax on the amount the company pays you and not on the amount the company earns. So if you get paid £50k then you pay tax on £50k. If the company is Irish then it wont pay tax on the other £50k either.

Gordon Brown cannot say how much you have to be paid. While there is minimium wage legistlation there is not a sub section that says that minimum wage for a pilot is £75k a year. So long as your company is paying you above minimum wage then it is legally compliant.

There are generous per diem payments available in Belgium, in Ireland there are per diem payments available as well but thereis also the small company exemption from corporation tax for the first three years.

You don't have to use dodgy "offshore" schemes or try to hide money in bogus bank accounts to avoid paying tax. If you are earnign £100k a year and living in a country with decent public services proper roads and toilets that flush then you need to accept that you will have to pay a reasonable amount of tax. Thsi does not mean you have to be a patsy and pay through the nose. There are tax planning opportunities out there. There is no magic bullit that will result in no tax, no one should be under that illusion.

What does the forum think is an acceptable tax rate for a pilot earnign £100k and above? 10% could only be achieved by "dodgy" means,
20% with really good and effectvie tax planning,
30% with a cheap lazy accountant.
Anything above and you deserve to be paying that much.

My last contract I earned close to £200k per annum and paid all in less than 30% which I would consider pretty good. I can sleep sound and not panic everythime I get a letter from the tax office.
Hasdrubal is offline