Boring Tax Question

[notar]

I have claimed my training costs for my CPL(H) and FI against my earnings (self- employed). The tax office says i cannot do this as the cost of the courses is capital expenditure. Any similar experiences?

[HeliHunter]

Yeah - I took a degree in Law, then one in Marketing and am halfway through Medicine - and then I find out that the ungrateful, miserable swine at the Tax office won't allow me to have my fellow tax payers fund it for me ..........!!!!

Poor show I say !!!

[B Sousa]

Every country is different. In the states if you advance your ratings to better your job, its a write off.
I think the best suggestion is to invest some change in an opinion from an Attorney who specializes in Taxation.
At least then you can owe two different sources. Advice from Pilots is usually free and worth about the same amount.

[Whirlygig]

I have heard that some Inspectors have allowed the cost of flying training against earnings but that most won't. Certainly, I would err on the side of caution and suggest that it isn't allowable.

However, it's not because it's capital expenditure but because professional qualifications (such as flying and accountancy) are classified as NVQ level 5 and qualifications at that level do not get tax relief.

So if you wanted to retrain as a plumber, you could get the tax relief. Thank Norman Tebbitt.

However, I hope you were reclaiming the VAT as that is allowable.

Go and see an accountant and have a chat.

Cheers

Whirls

[Whirlybird]

I carried mine forward as a loss for my new business as a helicopter pilot. My accountant said they probably wouldn't look into that, whereas if I offset it against earnnings from another business they would be less likely to allow it. It was never queried, and I'm now claiming those past losses against flying income. Seems like that may be the best way to do it, though probably every case is different.

[OldRookie]

I had a good look

I asked the same question and was told. "You can not claim for any training expenses that further your qualifications or allow you to advance. You can only claim for training that allows you to maintain existing qualifications eg refresher courses or the like where legislation changes requiring new qualifications in a role you already have."

Death and Taxes, lifes only guarentee.

[spinwing]

Mmmmm.... interesting ...

Most(?) countries would allow training for professional qualifications as an "education expense" .... having said that you (probably) cannot claim training to PPL level which is usually considered a hobby ....BUT once you have a PPL you should be able to claim further training (CPL ATPL) to "professional qualifications" as a valid educational deduction. You might not be able to claim the total spent (perhaps a percentage depending on your tax rate??).

Talk to the "Tax Man" try to get a "personal ruling" or whatever that may be called in UK .........

Good luck!

[OldRookie]

Originally Posted by spinwing

Mmmmm.... interesting ...

Most(?) countries would allow training for professional qualifications as an "education expense" .... having said that you (probably) cannot claim training to PPL level which is usually considered a hobby ....BUT once you have a PPL you should be able to claim further training (CPL ATPL) to "professional qualifications" as a valid educational deduction. You might not be able to claim the total spent (perhaps a percentage depending on your tax rate??).

Talk to the "Tax Man" try to get a "personal ruling" or whatever that may be called in UK .........

Good luck!

Here in the U.K. we have a tax system that is designed so that the further you get on in life the more they can squeeze out of you. They dont want you living comfortably enjoying life. They want you working, contributing to the economy and taxed. So they can pay for all the non working scroungers.

But if anyone knows a way of claiming training costs PPL CPL (other than VAT) please,please tell us (does that sound to desperate)

[puntosaurus]

Whirlybird has just told you how to do it, although it's against future earnings from flying rather than past earnings from other sources.

Set up a company as a vehicle to train and then employ you as a pilot, and register for VAT even though you're below the threshold. Then expense your training and bill your flying work when it arrives through the company. Hey presto ! VAT on training reclaimed and training costs set against (future) earnings.

Expect a nasty call from HMRC if you never get round to invoicing though, and possibly also if you only ever invoice one company.

[OldRookie]

Hmmm

Having just been through one complete investigation, which believe me when I say the only thing they did not ask for was a stool sample to confirm that I had eaten what I had bought on my business card at tescos and not sold it at a profit. I will give that a miss thank you !!!!

[puntosaurus]

Suit yourself, but there is nothing remotely dodgy about this, provided you genuinely intend to trade.