Know a good Accountant?
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Join Date: Jan 2006
Location: UK
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Know a good Accountant?
If you are a private buyer and can recommend a good accountant who has dealt with the tax implications of helicopter purchase, preferably in North London / Hertfordshire area - please PM me?
Thanks
PS If you don't know an accountant a shrink will do!
Thanks
PS If you don't know an accountant a shrink will do!
Hovering AND talking
Join Date: Feb 2003
Location: Propping up bars in the Lands of D H Lawrence and Bishop Bonner
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If you want a G-reg aircraft for private use and ownership, there are no tax implications; there's VAT and you have to pay it!!
Cheers
Whirls
Cheers
Whirls
Whirls,
You'll never get rich thinking like that! Tax and VAT are another of life's little games to work out a strategy on.
RS: in my experience, accountants just charge you lots to tell you stuff you already know OR could find out yourself. Best to gen up first and tell your own accountant what you want them to do for you (I'm Herts too and I've not found one that really knows their onions).
VAT - look at Denmark, there are lots of options depending upon where your machine is coming from. I brought my BIII in from the USA with OPMAS.
Income tax/company ownership - I owned my last machine through a limited company, charging myself and my then co-owner for all 'private' hours we flew (plus VAT). That way, I was able to reclaim VAT on expenses. I had to show that the helicopter was a business, ie it was leased out to a school some of the time. HMRC were all over it on two occaisions, but in the end they couldn't find us doing anything wrong. Remember: the tax authorities aren't there to tell you how to run your business, despite what some on here may tell you.
My current machine is N-reg'd and so owned privately (still cheaper than operating under a G-reg and paying the insurance premium for club use of the aircraft). I use it a lot for work, so charge it back at a competitive rate per hour, but must declare the income (less costs of operation) for personal tax. I could have owned it through my company but HMRC let me know in no uncertain terms that if I used it privately - even just once a year - I should pay tax on 30% of the capital cost of the aircraft, per annum
!
Drop me a PM with your plan and I'll gladly give you my spin on things. You'll never avoid tax, but you can minimise it if you play your cards right.
You'll never get rich thinking like that! Tax and VAT are another of life's little games to work out a strategy on.
RS: in my experience, accountants just charge you lots to tell you stuff you already know OR could find out yourself. Best to gen up first and tell your own accountant what you want them to do for you (I'm Herts too and I've not found one that really knows their onions).
VAT - look at Denmark, there are lots of options depending upon where your machine is coming from. I brought my BIII in from the USA with OPMAS.
Income tax/company ownership - I owned my last machine through a limited company, charging myself and my then co-owner for all 'private' hours we flew (plus VAT). That way, I was able to reclaim VAT on expenses. I had to show that the helicopter was a business, ie it was leased out to a school some of the time. HMRC were all over it on two occaisions, but in the end they couldn't find us doing anything wrong. Remember: the tax authorities aren't there to tell you how to run your business, despite what some on here may tell you.
My current machine is N-reg'd and so owned privately (still cheaper than operating under a G-reg and paying the insurance premium for club use of the aircraft). I use it a lot for work, so charge it back at a competitive rate per hour, but must declare the income (less costs of operation) for personal tax. I could have owned it through my company but HMRC let me know in no uncertain terms that if I used it privately - even just once a year - I should pay tax on 30% of the capital cost of the aircraft, per annum
!Drop me a PM with your plan and I'll gladly give you my spin on things. You'll never avoid tax, but you can minimise it if you play your cards right.
Hovering AND talking
Join Date: Feb 2003
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As I said!!!! G-Reg, private use, VAT.
Rich or not, I know the rules. Beware the ltd company route, there can be P11D implications. Beware the foreign reg route if you want to hire the aircraft out. Beware the business use route etc etc.
Be very careful how you actually want to use the machine. It's alll very well to have a pop at accountants but if you don't specify the reality, then they cannot give best advice.
And be very careful of taking advice from unqualified people on a forum. For example, tax at 30%? eh? Private use of a company asset is valued at 20% of asset value upon which you pay tax at your marginal rate (i.e. basic rate or 40%).
Cheers
Whirls
Rich or not, I know the rules. Beware the ltd company route, there can be P11D implications. Beware the foreign reg route if you want to hire the aircraft out. Beware the business use route etc etc.
Be very careful how you actually want to use the machine. It's alll very well to have a pop at accountants but if you don't specify the reality, then they cannot give best advice.
And be very careful of taking advice from unqualified people on a forum. For example, tax at 30%? eh? Private use of a company asset is valued at 20% of asset value upon which you pay tax at your marginal rate (i.e. basic rate or 40%).
Cheers
Whirls
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Rotorspin - give me a PM - there's one in Rickmansworth that could be useful to you. Also know an aviation friendly one in Bexley.
Also don't forget that the taxman will listen to an accountant way before he will listen to you. You're paying for the signature and fewer visits.
phil
Also don't forget that the taxman will listen to an accountant way before he will listen to you. You're paying for the signature and fewer visits.
phil
Whirls,
With all due respect, WTF has G-reg got to do with VAT? The only thing of importance is the place of importation into Europe, not what reg it's ultimately going to be registered on. As Rotorspin hasn't told us whether he is importing the aircraft or buying it here, I suggested the Denmark route. There are even ways of getting round VAT if the aircraft is here, but I'm not certain as I have no experience of it, but OPMAS do. No local accountant I spoke to knew anything about the Denmark route.
And I'm terribly sorry if I pressed a '3' rather than a '2'. I'm so humbled.
Honestly, some people on here can't wait to pick a fight.
My only point to Rotorspin is that accountants will often tell you what the regulations state, as they see it. When the nasty tax man (or in my case woman.... they seem to be the nastier
) visits, it's a whole new set of rules. And it's not a case of 'there be dragons': if your tax plan is sound and believeable, you can avoid paying too much. Despite what some on here may tell you.
With all due respect, WTF has G-reg got to do with VAT? The only thing of importance is the place of importation into Europe, not what reg it's ultimately going to be registered on. As Rotorspin hasn't told us whether he is importing the aircraft or buying it here, I suggested the Denmark route. There are even ways of getting round VAT if the aircraft is here, but I'm not certain as I have no experience of it, but OPMAS do. No local accountant I spoke to knew anything about the Denmark route.
And I'm terribly sorry if I pressed a '3' rather than a '2'. I'm so humbled.
Honestly, some people on here can't wait to pick a fight.
My only point to Rotorspin is that accountants will often tell you what the regulations state, as they see it. When the nasty tax man (or in my case woman.... they seem to be the nastier
) visits, it's a whole new set of rules. And it's not a case of 'there be dragons': if your tax plan is sound and believeable, you can avoid paying too much. Despite what some on here may tell you.
