1. CTC course costs; £109k.
2. Cadet pays £109k “bond” to Virgin Atlantic.
3. Virgin Atlantic pays course cost of £109k to CTC.
4. Virgin “return bond” to cadet over a 9 year period. Virgin Atlantic simultaneously reduces cadet’s salary by a “coincidentally similar” amount to the bond.
Who paid for the course?
Disclaimer… back of fag packet calculations
Virgin’s cost reductions;
VAT reclaim; up to £21,800
Corporation tax reduction; £22,890
NIC reduction over 9 years; £15,152
VA’s reduced tax liabilities over bond period; up to £59,842
Cadet’s liabilities and savings;
Cadet’s NIC & income tax saving over bond period; up to 56,680
Loss of earnings over 9 years; £109k
Cost of interest on loan (estimated); £21,800
Net cost to cadet £74,120
Don’t try and make VA sound benevolent.