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Old 17th May 2013, 07:40
  #12 (permalink)  
Old and Horrified
 
Join Date: Jan 2010
Location: Midlands
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Be very careful!

You can only reclaim VAT if you are a VAT registered business (or self employed) and can convince HMRC that you need the qualification in legitimate pursuit of your business. In other words, a PPL by itself would not qualify. If you are doing a CPL, HMRC would probably need a letter from a prospective employer saying he would employ you when qualified. Be sure that HMRC will scrutinise that very carefully!

You can only claim back income tax by off setting it against future earnings. In other words, you would have to declare a loss in your business for the first year or two while you are doing the training, and then use that to offset against earnings in the future (but only from earnings that result from flying), and you can only do this for (I think) 5 years. See HMRC Help sheet 227.

Not a tax expert, but an educated opinion from running my own business for many years. Take professional advice!
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