V.A.T. on training costs.
I can only repeat what I have posted before on this B.B. which is my own experience and the rules may have changed since 1981 when the following happened:
I registered for V.A.T. as a sole trader in an occupation which had absoloutely nothing to do with flying and when I only held a P.P.L. On my initial inspection and introductory chat on registering, the V.A.T. inspector advised me that as a sole trader, anything I did for a fee was liable to V.A.T. Several years later I got my C.P.L. and then decided to get the I.R. Though I had made no attempt to claim back V.A.T. on my C.P.L. training (of which there wasn't a lot anyway), the refund of the V.A.T. on my proposed I.R. training looked attractive. I telephoned the local V.A.T. office and explained to them what I wanted to do because, as a C.P.L./I.R. I would be able to charge organisations for my services on which I would be obliged to charge V.A.T.
I was advised that what I proposed was O.K. but that the increase in V.A.T. claimed back would trigger an inspecton. I was to advise the inspector of the circumstances and I should be O.K.
I got the ticket, paid the bill claimed back the V.A.T. and received the inspection. The V.A.T. inspector advised me that what I had done was not correct and that the V.A.T. would have to be repaid. I objected and she promised to get further advice. In due course I received a letter requiring me to repay the V.A.T. A few weeks later a friend asked me for my advice on some aerial photography that he was planning. I gave him the necessary advice sent him a V.A.T. invoice for it (which, unlike a solicitor I did not expect him to pay!)and declared the V.A.T. which I did pay. I drew the attention of the V.A.T. official who had required me to repay the V.A.T. on my training to this invoice and advised him that without the C.P.L./I.R. I could not have given the advice.
This was accepted (grudgingly) and the reclaim of V.A.T. on my I.R. training costs was allowed!
Last edited by P.Pilcher; 7th May 2003 at 05:24.