Claiming back Vat on training costs.
I wonder if you could help with an inquiry regarding claiming back Vat on training costs. I have just recently been sent a demand from the Vat Office regarding the vat I reclaimed on my initial commercial license training and any other flying costs thereafter.
We all appreciate the current aviation and economic climate in Britain. Hence the lull in many pilots careers whatever their original intentions. I operate a limited company and spent majority of my time (unfortunately) offering services as a Professional Engineer. I also carry out flight instruction for local flying school. Which means spending the whole day at the flying school regardless of the number of customers.
The Vat Officer says that professional flying is a hobby, and therefore will not make any allowances for Vat. But the officer has not instructed me to stop collecting Vat for my services rendered whilst flying.
Has anybody had similar case and what has been the out come following their Appeal? I don't want to end up a test case for the vat man and this case becomes a precedence which affects other pilots in the future.