Claiming Tax Back?

[tax back please]

Hello,

I have paid for my own 737 type rating and have secured full time employment with a UK airline.

In my view the cost for the rating should be regarded as an expense with the sole purpose of gaining employment, and should be offset against my income. Initial contact with the IR got me a big no, but I was just wondering if anybody has tried claiming the cost on their tax return and what the outcome was.

Thanks in advance

[Bealzebub]

If you incur expenses as a result of your employment, they may be allowable. Expense that simply put you in a position to apply for employment ,such as you describe, are not.

[Ropey Pilot]

Presumably a 'contribution' towards type rating run by a company whilst already in employment could be claimed? At least the initial couple of grand lump sum you stump up as you have already paid tax on it - the rest comes out of your wages before you are taxed so cannot be claimed for again?:confused:

Thinking of the current bmi baby type rating

[Re-Heat]

In the UK only:
Although vocational and educational training is allowable for tax in any other industry, Brown has deemed that flying training is not allowable - this was done on the premise that it is a pastime for rich people, with no regard for those of us who pay for training with an aim to employment.

Unfortunately to get your tax back you will have to change Gordon's mind - or vote him out of course.

Ropey - as a scheme run by the company, it will probably be VAT free anyway for your contribution, as they will be able to claim back against their VATable supplies.

[MJPilot]

It IS tax deductable here in the states, if you have already been working within the field and also the same job title.

I am a flight instructor right now, but in my previous taxes, I declared my job as COMMERCIAL pilot, which I am anyway. Now, if I further my education as such to gain more experience for a COMMERCIAL jet job, then the whole cost is deductable.

[raspberry]

Hi,

I have recently acquired a type rating, I also thought it would be a good idea to set up a company to claim the VAT back. I bought a copy from the Exchange and Mart, if you flick to the back pages you will see companies advertised that will sell you companies off the shelf, I bought one for £48, BARGIN!. I then gave it a cheesy name and registered myself for VAT. Three months later a received a cheque from the VAT man to the sum of £4,000. I added a certain amount of authenticity to the whole process by trading under my company name as a Flying Instructor for three months.

Not only have I received a nice chunk of money from the VAT man. The gamble has paid off, I have managed to secure a job with a European low cost carrier.

If anyone would like further info feel free to contact me.

Regards

R

[VFE]

Of course, another way round is to do as much of your training abroad thus depriving the government of the easy bucks they take from us.

VFE.

[Re-Heat]

Raspberry - are you sure that is legal? I believe you may be liable for VAT if they find out.

[habcer]

I live in the UK and am training towards an ATPL in Spain. Anyone know if I could claim anything back on that?

[scameron77]

On a similar thread, I am looking to start a modular course shortly, I'll be getting money from my family to pay for it.

I've been told that my uncle sent his son to university and paid for his fees by cleverly putting it down as a schoralship/sponsoring him, he got all sorts of tax breaks, I'll look into things my end but would appreciate it if anyone knows of anything similar and could expand.

WIth repsect to the tax breaks for training I'll speak to my best mate who is a Chartered Accountant studing for his Tax exams, he'll know of something surely.

Stephen

[expedite_climb]

Raspberry - Hope you invoiced the flying school for VAT then....

[kick the tires]

Rasberry, it is indeed legal.

I was self employed together with a few other pilots at a company many moons ago.

The prolem we had was convincing the tax man that it wasnt just a scam we were doing to avoid paying tax (Which quite plainly it was!!).

The way around it was that we invoiced each other for bogus services and in that way had a number of 'suppliers' and 'services' going through our books thus giving a degree of authenticity.

To claim ANY VAT back you have to be registered BEFORE the event. So if you are doing your flying training now, get registered quickly to claim any VAT you are about to pay!

[Crepello]

it is indeed legal
Apart from the fraudulent accounting, then.

I hope this is a wind-up.

[StudentInDebt]

All you clever accountant types might like to remember that "filing false company accounts" (or something along those lines) is a disqualifying offence for the purposes of having an airside pass issued should it appear on your Criminal Reference Check.

[Re-Heat]

Kick the tires - that is so highly illegal that I don't know why you are considering advertising it on a public bulletin board. Invoicing for bogus services is fraudulent accounting, and may be a sign of money laundering.

Scameron77 - unfortunately your mate, unless he works in tax, won't cover anything that could help at that level of his training. I suggest you employ a tax accountant yourself if you can devise a way to lower taxation, since he is not allowed to give advice until fully qualified, and holding professional indemnity insurance. That includes giving advice to friends and family.