No probs. Like you, im in a full time job. The FI work is on a part time basis. What I did(on accountants advice) was submit the form saying I was 'self employed', making 'additional earnings'. I can then invoice the FTO monthly for my hours flown at the relevant rate. Its then a self decleration tax return at the end of the year. There is some debate as to whether one should set up a limited company but I believe(again on accountants advice) thats only applicable for the purposes of having public liability insurnce. If the FTO has sufficient cover, then you wont need to be ltd.
Kiltie makes some good points however in relation to the fact it may be just the one FTO you are working for.
Oh and as for the VAT question......I was advised to submit my tax return showing the cost of the FI course as expenditure. We'll wait and see what happens!
