Professional Pilot Training and tax credit in UK

[mattia_70]

Hi everybody,
does anybody know if one can claim tax credit (or tax return or whatever tax benefit) for the money spent for professional pilot training in the UK?

Thanks

[Whirlygig]

If you mean Working Tax Credits, then no, as you're not working; you're training.

If you're talking about VAT, then maybe, if you set up as self-employed and later work as freelance - see threads passim as infinitum.

If you're talking about offsetting the training against your current employment, I've heard of it being done but I suspect that they were apochryphal tales. I know not of any mechansim to do that.

Cheers

Whirls

[Philpaz]

I cant see a way of getting the flying subsidised as it would be obvious what you were doing but it would be simple to claim for GS through the company and any training materials. Not legal, but easily done. I put over 40k in expenses through my Ltd company last year, legitimately i might add. But my accountant wouldn't know what ATPL was if i threw all 14 books at his head Just put it down as training materials, courses etc...

[Whirlygig]

I put over 40k in expenses through my Ltd company last year, legitimately i might add.

I would suggest respectfully that that was not legitimate; just because you pulled the wool over your accountant's eyes doesn't make it legal. If you had an inspection, you could easily be caught.

Unless of course your company is an aviation operator!!

Cheers

Whirls

[parris50]

Unfortunately, you can't claim training expenses as a tax allowance. Once you are employed as a pilot you can claim any renewal/revalidations and other costs associated with keeping you in the air but initial training is a no no. Well this is according to my accountant.

[Philpaz]

I would suggest respectfully that that was not legitimate; just because you pulled the wool over your accountant's eyes doesn't make it legal. If you had an inspection, you could easily be caught.

I never said i was putting my Training through my Co. Just that it could be easily done without being noticed. I've never had to prove any of my expences before. and a few thousand for GS would be easily lost among the numerous other training courses, hotel costs, equipment etc... I put through the books LEGITIMATELY.

Not legal, but easily done.

And i did say it wouldn't be legal!

[Whirlygig]

I can think of a number of frauds which are very easily committed - it is my business after all!! Doesn't make them right. I really would hate to think that you are advocating a fellow student should try to put disallowable expenses through a business.

Of course, you may get away with it but that's all it will be - getting away with it.

Cheers

Whirls

[Philpaz]

Well its a good job I'm not getting away with anything or for that matter advocating anything. Merely saying it could be done (illegitamately) if said student so desired.
I wouldn't do it myself, but in a world where you get taxed on everything you earn, evrything you spend, everything you save, your home, your car and your training, I can understand why people would/do fiddle the tax man.
As I said i dont do it but the temptation is always there not to declare cash in hand work or bump up your company milage, claim your new 42" LCD was a training aid etc... and i dont hold anything against those that do. I find if you concentrate too much on other peoples business you can often lose track of where your own is heading.
Anyway, I'll leave the self rightous to there own as we are at risk of creeping off the subject, as is re-itterated many times on this forum, the choice is yours to make, and so is the onous to make the right one!

Paz

[mattia_70]

Hi guys,
I started this thread.
I must clarify that I was asking if there was a LEGITIMATE way to avoid taxes.

To me it was obvious. Sorry if I did not explain myself.
Cheers

[TheBP]

Tax, tax, tax

I had considered the Limited Company approach, however the likelihood of it being considered legitimate by HMRC is probably equal to the likelihood of me discovering that I can fly by flapping my arms back and forth. I tried when I was a kid, it didnt work. I also tried using a large umbrella as a parachute for a couple of metres jump - bet you can guess how that one ended.

So much for the government that came into power with a mantra of "Education, education, education" - of course, they probably consider that the majority of those considering an aviation career would not be amongst their voters anyway.

I'm almost tempted to calculate the overall costs of training and tax as a percentage - however it would probably just depress me.

That being said, having read others posts stating "there's never been a better time to get the right hand seat" it appears there is (at this very moment) a great shortage of pilots. It could therefore be construed that the present taxation system for training represents a major hurdle for UK-born citizens, leading on to a skills shortage that must be filled by citizens of non-EU nations which otherwise could be. Anyone fancy taking on the Government on this one? Unfortunately I don't possess pockets deep enough, although a well-formed letter to an MP might be a start.

Anyway - I'd certainly also be interested in learning of any legitimate methods of setting professional training against tax for people in our circumstances. I do know certain schemes result in the airline you work for paying back training costs out of gross salary but that seems very restricted.

[Whirlygig]

It was actually Margaret Thatcher's Government which withdrew tax relief on training over a certain academic/vocational level (including aviation and professional accountancy!!) - you remember that Government, the one with the well-known and vocal airline pilot as her 2IC?! But the current Government aren't likely to change the status quo.

Cheers

Whirls

[TheBP]

Alas, I am too young to remember. Many thanks for enlightening me. Although I must wonder what their reasons for such changes were. Do you know?

For potential pilots back then I suppose the situation was very different with far fewer self-sponsored candidates? Far fewer jobs too of course..

Given the current situation in the market/training, such tax regimes should be looked at again.

I both hate and love politics at the same time. Although I almost universally loathe politicians.

[Philpaz]

Am i right in thinking that Aerial photography can be done on a PPL?
If so (big If), would it be possible to claim back your hour building costs as genuine costs, decide to expand in to air taxi, hence claim your CPL as a legitimate training cost etc etc etc until eventually you start the worlds smallest airline consisting of yourself and a C152 having claimed it all as LEGITIMATE business training expenses. Surely the airlines get tax credit on your TR and line training.

Ahhh, we can but dream...

Paz

[Whirlygig]

Yes you're right in that aerial photography can be done on a PPL but you can't accept any payment for it over and above the normal cost sharing rules and that would not be considered a business. Air taxi is classed as Public Transport and would most likely require an AOC.

Cheers

Whirls

[Philpaz]

You cant charge more for taking the pictures, but how about if your business was also to include framing and selling them. Just hypothesizing really, but if you opened a framing business and claimed aircraft hire and fuel back through that THEN you could legitimately claim your hourbuilding....?????

Awaiting SAM.......

Paz

[Whirlygig]

Hey Phil, I'll give you one guess!

Any such business would be making a huge loss which would certainly attract the attention of my very good colleagues at HMR&C .....

Cheers

Whirls

[Philpaz]

Any such business would be making a huge loss

Suppose that depends on how much you charge for your pictures.....I was thinking on Par with mr Da Vinci