Cost Sharing rules?

[Burger81]

I am not sure of where this thread should be, so if its in the wrong place I apologise.

I am a CPL holder trying to keep the eye in and also just enjoy some local GA flying whilst building some hours. Obviously this is pretty costly to do on an average wage. As there is generally always room for a passenger or 3 (mass and balance permitting :p ), a few family/friends and friends of friends have offered to share the costs with me to take them up for a jolly, thus getting a "pleasure flight" far cheaper than they could with any of the local flying clubs.
One of the instructors at the club I fly from said this is perfectly legal to "share" the costs as long as I make no financial gain and pay the same share as the passengers do.

Can anybody point me in the right direction of any written rules/regulations on this so I can make sure I am not doing anything that could get me into trouble.

I just want to be able to fly as often as I can for as cheap as possible. Its not about making any kind of financial profit at all from this :)

Many thanks

B81

[UnusualApproach]

Section 1, Part 34 ANO (http://www.caa.co.uk/CAP393).


Public transport and aerial work – exceptions – cost sharing
267 (1) Subject to paragraph (4), a flight is a private flight if:
(a) the only valuable consideration given or promised for the flight or the purpose of
the flight is of a sort described in paragraph (2); and
(b) the criteria in paragraph (3) are satisfied.
(2) Valuable consideration is of a sort described in this paragraph if it is one or more of
the following:
(a) valuable consideration specified in article 262(1);
(b) in the case of an aircraft owned in accordance with article 269(2), valuable
consideration which falls within article 269(3); or
(c) a contribution to the direct costs of the flight otherwise payable by the pilot in
command.
(3) The criteria in this paragraph are satisfied if:
(a) no more than four persons (including the pilot) are carried;
(b) the proportion which the contribution referred to in paragraph (2)(c) bears to the
direct costs is not more than the proportion which the number of persons carried
on the flight (excluding the pilot) bears to the number of persons carried
(including the pilot);
(c) no information has been published or advertised before the commencement of
the flight other than, in the case of an aircraft operated by a flying club,
advertising wholly within the premises of such a flying club in which case all the
persons carried on such a flight who are aged 18 years or over must be members
of that flying club; and
(d) no person acting as a pilot is employed as a pilot by, or is a party to a contract for
the provision of services as a pilot with, the operator of the aircraft which is being
flown.
(4) If valuable consideration specified in article 262(1) is given or promised the flight is a
public transport

[Burger81]

Unusual approach.

Thanks for the info. As usual, its never written where it is totally understandable at the first read through.

From the extract you've given, I take from it that, as long as I pay the same share of the costs as anyone else in the aircraft which does not exceed the total cost of the hire, then it is ok to do so. I may not advertise, offering any such service and I must not be employed by the flyign club where the aircraft is hired.

So in a nutshell, I can take friends, family and friends of friends up for jollys and share the cost of the hire with them, thus they get a cheap pleasure flight and I get cheaper hours in the logbook :)

Cheers

B81

[UnusualApproach]

I think you've got the gist of it.

I though I'd add that the first time I looked into cost sharing was looking up that information. It'd be great if someone more knowledgeable would come in confirm that the information given, is correct.

[Bazthehat]

I'm a student pilot just about to get my basic PPL and looked into the same thing myself. I can't quickly and easily find the specific part of the ANO right now, but one of the interesting things is that if you fly on behalf of an employer (but not hired as a pilot as such) then the employer can contribute up to ALL of the direct costs associated with the flight.

So, if you work at Joe Blogg's store, you take your boss out for a flight, they could pay all of your direct flight costs. There are very specific limitations (for instance, you must not be in a position where you HAVE to fly) but it could be another way of flying cheaply.

I'll see if I can find the ANO.

[Bazthehat]

Here you go: Part 34, Article 268

"268.—

(1) Subject to paragraphs (2) and (3), a flight is a private flight if the only valuable consideration given or promised for the flight or the purpose of the flight is one or more of the following—

(a)valuable consideration specified in article 262(1);

(b)in the case of an aircraft owned in accordance with article 269(2), valuable consideration which falls within article 269(3); or

(c)the payment of the whole or part of the direct costs otherwise payable by the pilot in command by or on behalf of the employer of the pilot in command, or by or on behalf of a body corporate of which the pilot in command is a director.

(2) Neither the pilot in command nor any other person who is carried is legally obliged, whether under a contract or otherwise, to be carried on the flight.

(3) If valuable consideration specified in article 262(1) is given or promised the flight is a public transport flight for the purposes of Part 3 and Part 4 (other than articles 37(2) and 39(2))." (my emphasis)



I found that Legislation.gov.uk (http://www.legislation.gov.uk/uksi/2009/3015/contents/made) has the whole ANO in a (relatively) easy to read format.

Article 267 which UnusualApproach put up basically states that you can cost share with friends as long as there's no more than 4 people and you split it evenly.

[peterh337]

but one of the interesting things is that if you fly on behalf of an employer (but not hired as a pilot as such) then the employer can contribute up to ALL of the direct costs associated with the flight.

Better than that... the employer can provide you with the whole aircraft, servicing, fuel, landing fees, the lot.

If it wasn't so, an aircraft owner who flies (to take the simple case) 100% on the business of his company, would have to foot some of the costs personally, which would be daft.

However, the other aspect of this, in the UK, is the Benefit in Kind system which the Revenue loves to invoke to screw aircraft owners for 5-digit settlements. Been there, done that... You need to get expert accounting advice here.

[Bazthehat]

However, the other aspect of this, in the UK, is the Benefit in Kind system which the Revenue loves to invoke to screw aircraft owners for 5-digit settlements. Been there, done that... You need to get expert accounting advice here.

Care to share any advice? Am I right in thinking that Benefit in Kind is, for instance, instead of sharing the cost of flying, your passenger buys you a sandwich, or a Ferrari, or whatever?

[peterh337]

No, you need to see a competent accountant.

A very big subject. Do a google on "benefit in kind".