truth about tax please

[BongleBear]

hi all,

ive recently got my tax code sorted thanks to the agreement between pilots unions and the tax man, but now i have the taste for rebates.

i understand there is a way of getting some tax rebate from type ratings, could anyone tell me if this is true? i paid for my own tr (please dont turn this thread into a load of abuse about me paying for my own type rating and ruining the industry [n.b. 3 years on and i still have a job]) and would like to chase this up.

cheers,
b bear

[Mercenary Pilot]

There is, but not unless you're a freelancer.

[Bealzebub]

Or unless the employer who had already employed you then required you to undertake a type rating at your own expense and this was a wholly necessary and required part of that employment.

Not to be confused with an offer of employment subject to you obtaining a type rating at your own expense, that simply is an expense that places you in a position to undertake that employment.

[DeltaT]

What about doing the type rating that they (the airline) pays for and then suck it back out of your salary?

[AI101]

would the ryanair type ratings apply for cadets for some tax back. Did the rating over 3 years ago but belive you have upto 6 years to claim back someone please answer this

[Rotorhead1026]

Can't stress this enough ... consult with a tax expert. Don't risk either losing a deduction or incurring the wrath of the "gummint" based on advice given here. If the source isn't that familiar with aviation matters, he or she can find someone who is. :)

[arandcee]

Although a letter to your friendly tax office is the best (and cheapest, if not necessarily the quickest) way to find out, bealzebub is right. The expense must be incurred 'wholly, necessarily and exclusively in the performance of your duties'. Expenses incurred to put you in a position to do a job which you don't already have are not allowable.

And yes, you can claim for the previous six tax years - i.e. you have until 5 April 2009 to make a claim for the year to 5 April 2003. How you make these claims depends on whether you fill out a self assessment tax return or not. Once again, a letter to your tax office (usually noted on your P60) is the best way to start.

Incidentally, if you are a pro pilot and a UK tax payer you are entitled to a 'flat rate expense' (FRE) in your tax code to allow for the normal yearly job expenses. If you don't have it, or aren't sure, once again (and at the risk of repeating myself) drop your tax office a line and ask them to review your code. Tell them your National Insurance number, the full name of your employer, and how long you've been employed as a pilot.

[wbryce]

Does anyone know a clued up accountant/taxation expert that understands the tricks of the trade for contract pilots? I'm using a local accountancy firm and the name Troy McClure springs to mind... pm me if you don't wish to post publicly.