Are self sponsored type ratings tax deductible? (SELF EMPLOYED)

[gilbertmchris]

Hello although this does not effect me as I am not intending on ever paying for a type rating I was having a discussion with a friend who is considering it...

When I joined my company I was "bonded" for my training in the form of a personal loan that was then paid by the company as long as I stayed for 4 years.
The Loan repayments were paid to me monthly for the duration of the loan, separate from my salary and Tax free.

If the inland revenue are happy with this situation (similar in other companies) if one was to pay for an Easy or Ryanair rating then become "self employed" by Parc/brookfields, would the payments towards the loans be deductible from income tax? has anyone managed to persuade the inland revenue to see this as similar to the traditional bonding arrangements?

From what I can find out as an EMPLOYEE one cannot claim back for training for a new role but as an EMPLOYER the cost of TR training is deductible. The difference with the current schemes are that with PARC and Brookfield you are technically self employed and therefore the scope for tax free training is much larger.

I know we will never get the VAT back from training but once a qualified pilot all professional training should surely be exempt from income tax?

Thanks
C

[bfisk]

The question should really be if you are de facto self-employed or if it's just a paperwork excersice to conceal employment. In the latter case, be very careful with questionable tax tricks, they could backfire. I'm not saying they will, but if they do... :ouch:

[despegue]

In "false self-employment", the employER is always responsible for the tax-evasion, not the employee, who is considered victim.

Beware Ryanair etc...

[Agaricus bisporus]

"false self-employment"

Beware the mythical status of "self employment" that is peddled by some of the less scrupulous agencies when they place you with a single employer.

Under UK tax law you cannot claim "self employed" status if you work solely or predominantly for one employer. Just ask the tax office. Its very easy!

You may well be able to do so under other tax systems (Irish perhaps?) this is probably how such agencies get away with these extravagant claims. They'll have a weasel paragraph in the small-print though. It is up to YOU to check the tax situation, not them. After all, as you are self employed they don't employ you - so how could they be responsible for your tax affairs?

And as bfisk says, beware lest you are caught - it will be VERY expensive.

And dream on if you think having a professional qualification exempts you from tax on further training. As if! What planet do these ideas come from?

Caveat Emptor, P2F fool.

[zero1]

I think you/friend need to check their terms of reference/contract first then ask about the HMRC about the IR35 rules. As others have pointed out this will depend on a number of variable such as the country you/friend are paying tax too and the contract organisation tax arrangements.

All of this sounds like someone is trying to pull a fast one with the tax people by slight of hand, just make such you/friend are not the ones the tax office chase after. The big guys have tax lawerys who get paid six figures to pass the buck.

Just ask the tax man once you find out you contract terms and conditions and they will advise you. But don't leave it to the end of the contract to find out....:=

[sidtheesexist]

I hope not..........why would we want any form of financial incentive which might help the practice to proliferate?? People who pay for TRs are are helping to drive down Industry Ts and Cs - they need no encouragement.

[Birdy767]

It s not me, it s my friend....

"Self sponsored type rating" always makes me laugh...

Definition: "One that finances a project or who assumes responsibility for another person or a group during a period of instruction, apprenticeship, or probation."

By definition sponsor can not be "self" otherwise you don t need to be sponsored...

Shame on those people who can't find a job without paying and are not brave enough to clearly mention it!

[gilbertmchris]

Just to be clear, I was asking on behalf of a friend who does not use pprune and it did come up in a conversation. When I did my training I would never had considered paying for a TR and now I have command and a few thousand hours I definitely will not.

Unfortunately for some the options I had are no longer there and making the best of the current situation is the only option.

Thanks to all those wiith useful input

C

[Birdy767]

I "understand" your point of view but that killed the job BIG time... and some of us still believe that after having spent years and energy building up experience we should deserve something better than the actual picture.

There are plenty of experienced pilots seating home wasting their precious time in filling "psycho" applications.

Lots of threads are about this problem so let s make it short.

If you wonder, I have a decent job but too many of my ex-colleagues are still struggling