Just to clarify regarding what might happen if , having reclaimed the vat on training costs, you go straight into an employed job (lucky you). I understand that if you still have any vatable product in your company when you cease to trade, you are required to repay the vat. Therefore a self employed pilot still has the product (his training), he has not sold a single piece of it. The vat man could take the refunds back.
I dont think there would be a penalty as thesystem allows simply that the business pays back the vat on any unsold product that remains in the business upon cessation.
Is training the same as the product?