Can you reclaim the VAT and/or tax on training costs?
Join Date: Jan 2014
Location: UK
Age: 31
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Any VAT registered company could have that happen, but most likely it would be a few years of self employed work where I can charge VAT before a full time job would come along.
This is probably going to be one of those things where i'll just have to see happens.
when the Maths is done its around £20,000 that can be saved on training I would rather save that and run the risk of possibly having to pay that one day than not saving that money in then first place.
This is probably going to be one of those things where i'll just have to see happens.
when the Maths is done its around £20,000 that can be saved on training I would rather save that and run the risk of possibly having to pay that one day than not saving that money in then first place.
Last edited by GMavrick; 16th Feb 2014 at 10:41.
Join Date: Mar 2017
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If any UK students are still thinking of reclaiming VAT, tl;dr: Don't.
If you misunderstand that, ask yourself if you've considered the following:
1. Have you read anything about VAT regulations: https://www.gov.uk/topic/business-tax/vat
2. Specifically, reclaiming VAT: https://www.gov.uk/reclaim-vat . The very first line of which is this
3. "Business" is a legal definition. You might wanna make sure you meet this. https://www.gov.uk/set-up-business
https://www.gov.uk/working-for-yourself
Specifically, you must provide goods or services regularly for renumeration.
4. So, you're a business. In which case, which exact part of PPL(H) training relates to any of the goods or services you're selling? Oh wait, you're a PPL so can't actually "sell" anything, yet. But I'm sure you've already thought of a way of explaining this to a judge.
5. Two years later and you're a CPL(H) with a viable business and sales. You were aware of the time limits involved in reclaiming VAT right? https://www.gov.uk/vat-registration/...e-registration
6. You're aware of the specific scheme any goods or services were sold to you under? VAT Schemes Guide ? Alternative ways of accounting for tax
7. And retain invoices with required details? https://www.gov.uk/vat-record-keeping/vat-invoices
8. You know the VAT rate of these, and are sure they're not excempt? https://www.gov.uk/guidance/rates-of...s-and-services
9. Even then, in most cases, you simply can't reclaim VAT on training for yourself. https://www.gov.uk/hmrc-internal-man...anual/bim35660
Now of course, if you already own a busisness for which putting an employee through a (H) training course is a viable expenditure, by all means go ahead. But if you can afford to pay for other people to train whilst employing them, you wouldn't be reading this.
If you misunderstand that, ask yourself if you've considered the following:
1. Have you read anything about VAT regulations: https://www.gov.uk/topic/business-tax/vat
2. Specifically, reclaiming VAT: https://www.gov.uk/reclaim-vat . The very first line of which is this
You can usually reclaim the VAT paid on goods and services purchased for use in your business.
https://www.gov.uk/working-for-yourself
Specifically, you must provide goods or services regularly for renumeration.
4. So, you're a business. In which case, which exact part of PPL(H) training relates to any of the goods or services you're selling? Oh wait, you're a PPL so can't actually "sell" anything, yet. But I'm sure you've already thought of a way of explaining this to a judge.
5. Two years later and you're a CPL(H) with a viable business and sales. You were aware of the time limits involved in reclaiming VAT right? https://www.gov.uk/vat-registration/...e-registration
6. You're aware of the specific scheme any goods or services were sold to you under? VAT Schemes Guide ? Alternative ways of accounting for tax
7. And retain invoices with required details? https://www.gov.uk/vat-record-keeping/vat-invoices
8. You know the VAT rate of these, and are sure they're not excempt? https://www.gov.uk/guidance/rates-of...s-and-services
9. Even then, in most cases, you simply can't reclaim VAT on training for yourself. https://www.gov.uk/hmrc-internal-man...anual/bim35660
Now of course, if you already own a busisness for which putting an employee through a (H) training course is a viable expenditure, by all means go ahead. But if you can afford to pay for other people to train whilst employing them, you wouldn't be reading this.
Join Date: May 2001
Location: Escrick York england
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4. So, you're a business. In which case, which exact part of PPL(H) training relates to any of the goods or services you're selling? Oh wait, you're a PPL so can't actually "sell" anything, yet. But I'm sure you've already thought of a way of explaining this to a judge.
So where does it say a PPL can't be paid
Extract from uk CAA
Privileges and conditions
A PPL for helicopters will allow you to act as pilot in command (PIC) or co-pilot in non-commercial operations on helicopters.
The exception to this is for holders of a PPL (H) with instructor or examiner privileges, who can be paid for the following:
Flight instruction
Conducting skill tests and proficiency checks
for the LAPL (H) or PPL (H) and any associated ratings and endorsements.
So where does it say a PPL can't be paid
Extract from uk CAA
Privileges and conditions
A PPL for helicopters will allow you to act as pilot in command (PIC) or co-pilot in non-commercial operations on helicopters.
The exception to this is for holders of a PPL (H) with instructor or examiner privileges, who can be paid for the following:
Flight instruction
Conducting skill tests and proficiency checks
for the LAPL (H) or PPL (H) and any associated ratings and endorsements.
Last edited by md 600 driver; 19th Mar 2017 at 15:31.
The Original Whirly
Join Date: Feb 1999
Location: Belper, Derbyshire, UK
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Before I reclaimed VAT on training for my CPL(H), I phoned my local VAT office to check that it was legal. I explained that I was a PPL(H), was training for my CPL(H), and intended to be self-employed as an instructor after that. I still remember the conversation...
"Some types of training you can reclaim and some not. Helicopter instructing? Ooo, no-one's ever asked about that; I'll have to look it up... Here we are... Yes, you can definitely claim it back."
She then gave me the time limits, which I don't remember, as this was back in 2002 or thereabouts. So of course, things may have changed since then. If they haven't, it's legal.
But of course, it would be sensible to check with your VAT office first rather than believing anything you read on PPRuNe.
"Some types of training you can reclaim and some not. Helicopter instructing? Ooo, no-one's ever asked about that; I'll have to look it up... Here we are... Yes, you can definitely claim it back."
She then gave me the time limits, which I don't remember, as this was back in 2002 or thereabouts. So of course, things may have changed since then. If they haven't, it's legal.
But of course, it would be sensible to check with your VAT office first rather than believing anything you read on PPRuNe.
