Freelance Pilot - Tax/VAT reclaim on TR

[loftustb]

Not sure if this is the right forum but someone here might have done the same thing.

If a self-employed FI bought a type rating on something like a KingAir and obtained work as a freelance corporate pilot, would the TR costs be a legitimate business expense and could VAT be reclaimed?

[Miles Magister]

You can reclain the cost of the course against your tax liability but can only claim the VAT if you are VAT registered.

A few minutes with a local accountant would normally not cost you anything for the advice and then only a couple of hundred quid to do the returns. It would be money well spent.

MM

[HS125]

A few minutes with a local accountant would normally not cost you anything for the advice and then only a couple of hundred quid to do the returns. It would be money well spent.

MM


I concur, My accountant costs well under a grand a year all in and does personal, company and VAT returns for me.

The advice alone saves me thousands.

[BizJetJock]

Whilst that is true of recurrents and even (possibly) adding extra types later, unfortunately a bolshie tax inspector will class getting a type rating in order to start freelanceing as a startup cost that has to come out of tax-paid money. Having said that, if you're lucky they won't look too closely and you might get away with it.
Good luck!:ok:

[HS125]

The letter of the law when offsetting course fees is I believe along the lines that If youre developing an exsisting skill its deductable, if you aquire a new skill its not.

I'd therfore argue that a rating is building on an exsisting skill as you would be able to fly other aircraft with the class rating(s) on your standalone licence.

My accountant, and local tax office when we phoned them agreed.

[theWings]

I'm with HS125 on this. My tax office took the view that, broadly, licences were new skills and ratings were enhancements. I reclaimed the lot and now have a valid revenue stream on which I pay plenty of tax, thank you very much. I win, the tax man wins, everybody's happy:D

the Wings