Tax relief on type ratings

[ole370]

Do any of you esteemed colleagues have any information on being able to offset type rating costs against tax in effect making it a tax deductible expense?

[CPTVOR]

As far as Ive been told, you are allowed to claim back the interest on the loan against your income tax.

[solo si]

I am in the middle of doing my type rating (self sponsored) and I was interested to read that people can get tax relief all be it with interest being paid on personal loans etc.

How would I go about finding out more about this? Speaking to an accountant or the Inland Revenue?

Many thanks,

Solo Si

[BA-BEANCOUNTER]

Best to contact your local tax office or see http://www.hmrc.gov.uk.

Tax Form P87 allows you to claim for
"fees you had to pay to carry on your profession and
subscriptions to professional bodies related to your work
(the organisation can tell you if it has Inland Revenue
approval and how much you should ask for)"

but this would only cover you for once you are employed.

This was covered with lots of good advice on
http://www.pprune.org/forums/printth...hreadid=161557

[solo si]

Ba-Beancounter,

Many thanks for your reply. I will follow it up with the Inland Rev. first of all and then I'll speak to my Type Rating training organisation and go from there. It would be nice to have something back for a change even if it just amounted to the type rating issue fee.

I'll let you know how I get on and maybe if could help others too.

Many thanks once agin.

Solo Si

[Bealzebub]

Speaking as an ex revenue inspector in the UK, and assuming your question relates to Uk income tax, the answer is probably no.

You cannot normally claim for expenses that put you in a position to undertake a job. So if you are doing a type rating off your own back to put you in a position to undertake employment then it is not allowable.

If you are already working for an employer, who then as part of that employment requires you to undertake a type rating at your own expense, then the costs incurred by you may be allowable against your tax liability.

You would need to clarify it with your local tax office. However if you are not working for an employer at this time then your decision to spend money on a type rating is your choice and is not allowable.

[cavortingcheetah]

Damnation and I am sure the Devil's right on that one. But in addition,
with regard to the cost of a type rating and expenses incurred.
It is surely not the tax liablity which reduces by the cost of the rating. It is the total amount of taxable income which might be affected in any one tax year, reduced by the amount agreed with the IRS for the rating?
Furthermore, if capital has been used to pay for the rating, then it cannot convert to income for the purpose of reducing income tax liability?