freelance/self-employed?
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Join Date: Oct 1999
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freelance/self-employed?
I became a freelance bizjet pilot a few months ago. Being new to the tax/accounting aspects of that sort of thing, I signed up for a course offered by Inland Revenue. As a result have been advised that I cannot be self-employed unless I own the aircraft I am flying. Anyone got any thoughts?(Other than, perhaps, claiming political asylum for unreasonable treatment in my home country!)
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Say again?
Well, IŽll bet that comes as a surprise to the hundreds of other freelancers out there!
The main decider seeems that one may be considered freelance as long as you are working for ( invoicing ) several entities rather than just one company, this being ŽemployedŽ
I recommend that you find a good tax accountant....someone like W T Fry in Worthing, who know a thing or two about Pilots. Good Luck.....
p.s. why the move away from the airlines?
The main decider seeems that one may be considered freelance as long as you are working for ( invoicing ) several entities rather than just one company, this being ŽemployedŽ
I recommend that you find a good tax accountant....someone like W T Fry in Worthing, who know a thing or two about Pilots. Good Luck.....
p.s. why the move away from the airlines?
Join Date: May 2001
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Huh???
I have to echo the comments of my eminent friend - BBCapt.
I've been a self-employed (and self-unemployed!) freelance Pilot for many moons. I always ensure that I retain my self-employed status by working for a number of different entities.
My Tax Expert (and student PPL too!!) Ms Base Line, thinks that maybe the IR didn't fully understand your situation...I believe that Ms Base Line may comment further - once she's finished practising her RT.
I've been a self-employed (and self-unemployed!) freelance Pilot for many moons. I always ensure that I retain my self-employed status by working for a number of different entities.
My Tax Expert (and student PPL too!!) Ms Base Line, thinks that maybe the IR didn't fully understand your situation...I believe that Ms Base Line may comment further - once she's finished practising her RT.
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I might be new to flying but I've been a tax professional for a long time. I am in agreement with BBCapt and 727 exec, the criteria for self employment includes your availability for work for a number of entities be they companies or individuals. I can't imagine how the IR could have decreed that owning an aircraft would give you self employed status but not otherwise. Not to worry however, just get some good advice from an accountant who can ensure that you're taxed on the right basis and get the deduction for the expenses "wholly and exclusively incurred for the purposes" of the trade.
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The Outcome So Far
BB Capt, 727 Exec & Base Line: thank you for your helpful and supportive responses. I have just been visited by 2 charming (yes, really) members of Inland Revenue and, as a result, believe the matter will be satisfactorily resolved.
The root of the problem seems to have stemmed from IR56 which, amongst other things, defines self-employed as 'someone who provides the main items of equipment they need to do the job.' It would appear that this was taken rather too literally by the person running the course.
With hindsight, it would have saved me a lot of trouble and concern if I had never signed up for the course in the first place! We live and learn.
The root of the problem seems to have stemmed from IR56 which, amongst other things, defines self-employed as 'someone who provides the main items of equipment they need to do the job.' It would appear that this was taken rather too literally by the person running the course.
With hindsight, it would have saved me a lot of trouble and concern if I had never signed up for the course in the first place! We live and learn.
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Indulge me
Please forgive this rant, if it is un-needed.
Are you curerently employed by an airline, or employed as a flight crew member in a scheduled operation, and then decided that there was some money to be made in GA.
Should you be currently employed then please accept this suggestion, keep out of GA for several reasone. 1) you will Pi$$ off all the GA pilots who work very hard to keep employed, and 2) many GA companies would rather not employ airline flight deck crew, as they have a belief that airline crew are not up to the "extras" that GA carries.
However IF I am wrong, and you are now an X airline bod, then welcome, and good luck.
As far as the previous responses go I totally agree, we have had the IR interests at heart.
Are you curerently employed by an airline, or employed as a flight crew member in a scheduled operation, and then decided that there was some money to be made in GA.
Should you be currently employed then please accept this suggestion, keep out of GA for several reasone. 1) you will Pi$$ off all the GA pilots who work very hard to keep employed, and 2) many GA companies would rather not employ airline flight deck crew, as they have a belief that airline crew are not up to the "extras" that GA carries.
However IF I am wrong, and you are now an X airline bod, then welcome, and good luck.
As far as the previous responses go I totally agree, we have had the IR interests at heart.
