PPL test fee and VAT
Join Date: Sep 2004
Location: Down at the sharp pointy end, where all the weather is made.
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An interesting point of view. As far as I can see, an instructor can be remunerated 'within a Club environment', which I take to mean that both the instructor and the student need to be members of the same Club. I can't find anywhere that states the route by which that remuneration must occur.
Anyone else any insight, here ?
TOO
Anyone else any insight, here ?
TOO
Join Date: Oct 2012
Location: UK
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TOO,
It is not about how Instructors get paid (employed, self-employed, etc) it is about who provides the service.
"...get students/candidates to hire the aircraft from the Club, then enter into a separate, private arrangement with the instructor"
Perfectly acceptable, I would have thought, for Examiners and Instructors for continuation training but, for Initial/Renewal training, you cannot 'Have your cake and eat it'.
Either:
a) The Club is providing both airctraft and instruction and needs to be an RF/ATO
or
b) The Club is only renting aircraft to members and the Instructor is providing instruction, in which case they will need to be registered as an RF/ATO.
From what you have written it sounds as if a) above applies but, for solely Tax Avoidance reasons, you are charging as if b) applied. Be careful !
It is not about how Instructors get paid (employed, self-employed, etc) it is about who provides the service.
"...get students/candidates to hire the aircraft from the Club, then enter into a separate, private arrangement with the instructor"
Perfectly acceptable, I would have thought, for Examiners and Instructors for continuation training but, for Initial/Renewal training, you cannot 'Have your cake and eat it'.
Either:
a) The Club is providing both airctraft and instruction and needs to be an RF/ATO
or
b) The Club is only renting aircraft to members and the Instructor is providing instruction, in which case they will need to be registered as an RF/ATO.
From what you have written it sounds as if a) above applies but, for solely Tax Avoidance reasons, you are charging as if b) applied. Be careful !
Join Date: Sep 2003
Location: UK,Twighlight Zone
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Blimey. Seems much ado about nothing. When I do a skill test I am paid direct by the student and it just goes in against my self employment return. Can't imagine ever making enough money out of it to charge vat!!!
Join Date: Apr 2013
Location: Scotland
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