PPRuNe Forums - View Single Post - Italian tax authority after Ryanair pilots
Old 13th Jan 2013, 05:26
  #25 (permalink)  
Loose rivets
Psychophysiological entity
 
Join Date: Jun 2001
Location: Tweet Rob_Benham Famous author. Well, slightly famous.
Age: 84
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Serious stuff this. Many years ago I had to travel the width of the UK to do my job flying and training crews in Cardiff. I claimed to be self employed and set all kind of costs against my income. Car and accommodation were of course the main items. I got a huge tax bill.

I went to what must have been the heavy end of a tribunal. A magistrate, a QC and two top tax bods. I went in alone.

This just was being employed to do a job for one employer over a year obliged me to be properly employed on a PAYE basis.

I protested long and loud for about an hour, citing all kinds of business done by one man bands. At the very least it would have opened up a huge can of worms and while waiting outside, one of the tax bods said, 'I think you've got this one.' I asked him if they'd appeal. He said no.

When I went in, the QC and magistrate had decided I could keep my money. It was a huge Phew! moment.

Later the law changed and who knows, it might well have been my argument that prompted it.

I was told by local tradesmen that one had to work for at least three employer/clients in the tax year to be considered for self-employed status. I never put it to the test, but what I did do was start a Limited Liability company in another trade. I also flew freelance 3 days a week.

I hired a respected accountant and he did everything. Really earned his keep.

Now, new dangers.

Just being one of the two (then a minimum number) directors left you open to 178 criminal laws. It is not a free lunch--despite how many free lunches you get.

It worked quite well for us, but there was a huge amount of paperwork involved with tax and VAT alone, and every invoice and slip of paper was a legal document, with all that implies.

Take care and keep a fat tax fund healthy and locked away from temptation.
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