Self assessment Tax return
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Self assessment Tax return
Hi,
Can anyone advise as to what expenses can be claimed as a professional airline pilot when filling out a Self assessment tax return and to what extent, ie can a laptop, mobile phone, home telephone and office be offset or part there of?
Clearly getting an accountant to complete the tax return would be the best solution but being new to the self employed game and having lost my job for 2nd time in 7months yesterday money is now a big player.
If anyone in the 'know' can throw some light on what can and what cannot be offset as an expense it would be highly appreciated..
Cheers
Darren
Can anyone advise as to what expenses can be claimed as a professional airline pilot when filling out a Self assessment tax return and to what extent, ie can a laptop, mobile phone, home telephone and office be offset or part there of?
Clearly getting an accountant to complete the tax return would be the best solution but being new to the self employed game and having lost my job for 2nd time in 7months yesterday money is now a big player.
If anyone in the 'know' can throw some light on what can and what cannot be offset as an expense it would be highly appreciated..
Cheers
Darren
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From memory, without being ars*d to look up the guide on the Balpa website, what you claim is an Inland Revenue "FRE". This is a deductible allowance pa of £800 to cover all sorts of expenses you are recognised to incur. There is an additional £100 you can claim bringing it up to £900 total; I think this is for mileage. You can back-date your claims for the last 5 years if you've forgotten to claim previously (I think). PCs are not recognised expense. You don't need receipts to claim this FRE, but you will if you attempt to claim more than the £900 and can justify it within the scope of the table-of-expenses they allow.
Cue someone else to scoff at how vague and inaccurate I am being....but I'm away to take the tatties off the boil.
Cue someone else to scoff at how vague and inaccurate I am being....but I'm away to take the tatties off the boil.
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Thanks Kiltie,
I forgot to mention that during the 08-09 tax year I was on 'paye' for an airline which subsequently folded forcing me into becoming self employed.
I battled for a good few months arranging the 'Fre' allowance with the tax office eventually re-adjusting my tax coding to suit, soon after that no job!
I doubt one can claim it again on the self assessment hence wondered if there is anything else I can use as an expense whilst being self employed to offset against tax?
Cheers for the info
Darren
I forgot to mention that during the 08-09 tax year I was on 'paye' for an airline which subsequently folded forcing me into becoming self employed.
I battled for a good few months arranging the 'Fre' allowance with the tax office eventually re-adjusting my tax coding to suit, soon after that no job!
I doubt one can claim it again on the self assessment hence wondered if there is anything else I can use as an expense whilst being self employed to offset against tax?
Cheers for the info
Darren
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The BALPA negotiated allowance is really for employed pilots. Self employed is a bit more complex. If you use your home as your base, you can claim for mileage to the airport, any hotel costs which are not paid for by the company you are working for, any other commuting costs (train, bus, airfares etc.), meals while away from home (again if not provided), incidentals like telephone calls and so on. Medicals and any CAA licence costs as well.
The thing is to keep receipts for everything and keep a log of everything you spend. It makes it a lot easier when doing your accounts at the end of the tax year. Also consider paying self employed NI.
I personally use a reputable accountant. It is obviously an added cost but even that cost is tax deductable. They can keep you right as to what you can claim and what you can't and also HMRC are more likely to accept your figures when coming through an accountant. Otherwise you may find them asking questions or investigating you even if everything is above board.
Also don't forget to register with HMRC as self employed.
But as Kiltie says, nothing to stop you doing it yourself.
Good Luck
The thing is to keep receipts for everything and keep a log of everything you spend. It makes it a lot easier when doing your accounts at the end of the tax year. Also consider paying self employed NI.
I personally use a reputable accountant. It is obviously an added cost but even that cost is tax deductable. They can keep you right as to what you can claim and what you can't and also HMRC are more likely to accept your figures when coming through an accountant. Otherwise you may find them asking questions or investigating you even if everything is above board.
Also don't forget to register with HMRC as self employed.
But as Kiltie says, nothing to stop you doing it yourself.
Good Luck
Good advice above;use an accountant!
b/rgds
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In cases like yours I suggest the DIY route is a false economy and in the long run is going to be more costly, providing you get an experienced accountant.
I would strongly argue that, in your position, you can't afford not to spend (a relatively small fee) on an experienced accountant.
I would strongly argue that, in your position, you can't afford not to spend (a relatively small fee) on an experienced accountant.
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Have you registered with HMRC as an "airline pilot"? If so you may have reduced your options as it suggests employment rather than self employment.
I'm registered as a self employed commercial pilot and claim every thing that allows me to seek or continue working. Home office, (laptop, software, printing consumables, quarter of household heating/elect bills), medicals, renewals.
Took me a day to get the type rating on the HMRC website.
I'm registered as a self employed commercial pilot and claim every thing that allows me to seek or continue working. Home office, (laptop, software, printing consumables, quarter of household heating/elect bills), medicals, renewals.
Took me a day to get the type rating on the HMRC website.
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Reading the papers these days I think you would be justified in claiming for a duck island, cleaning your moat, dry rot, a hang glider, repairs to your heli pad, a motor cycle, all the costs related to any house you chose to nominate as a second home, all house hold expences, etc etc etc.
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Remember that the income tax relief on pension contributions given automatically to you is based on standard income tax. So if you are paying 40% tax make sure that you include your pension contributions in the appropiate place on your tax return to get your full allowance. Plus claim back years if you have not done so in the past.
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Swimming pool repair,second home mortgage,hotels etc.No 
all your just here to work your arse off and pay for all the public sector workers ,now stop moaning and give your money to the government they need every penny they can get!
all your just here to work your arse off and pay for all the public sector workers ,now stop moaning and give your money to the government they need every penny they can get!
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Whilst I agree with the advice "get a good accountant", it is difficult for the layman to differentiate between good and bad accountants. I use a CA who is the senior partner in the biggest organisation in my city, but it was I who had to bring the FRE allowance to his attention, having been told about it by a bloke in the pub. That infuriated me. Most accountants are virgins to aviation related subjects.
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Best advice I can give you is that the tax man will give you nothing.Just before I left the UK 6 years ago I had to pay tax on my loss of license insurance, like me not being able to fly again was a benefit in kind!The public sector in the UK has you poor tax whores over a barrel.
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My sentiments entirely, finding a reputable accountant who specialises in the field we are in is probably going to prove difficult.
Northern Flyer, yes I am registered like yourself as a self employed commercial pilot, during the 08-09 tax year I have been taxed whilst 'employed' @ 40% and for last 6 months of the tax year self employed, therefore 6mnths books is all that I need to sort out, is it worth an accountant for that?
Cheers guys
Northern Flyer, yes I am registered like yourself as a self employed commercial pilot, during the 08-09 tax year I have been taxed whilst 'employed' @ 40% and for last 6 months of the tax year self employed, therefore 6mnths books is all that I need to sort out, is it worth an accountant for that?
Cheers guys
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Have a look at Airline pilots: industry wide FRE for 2006/07 onwards: summary and the links from that page, especially Airline pilots: industry wide FRE for 2006/07 onwards: employer contributions
These pages specifically refer to employed pilots but the details of what you can claim and not claim for apply equally to s/emp'd pilots - it's just that as a s/emp'd person you will have to claim the items on your return rather than just ask for the Flat Rate Expense in your code.
Golden rule - keep receipts.
For something to be eligible as an expense it must be 'wholly, necessarily and exclusively incurred in the performance of your duties'. At the end of the day if you're not sure but you think it applies, bung it down but be prepared to pull if they turn it down.
These pages specifically refer to employed pilots but the details of what you can claim and not claim for apply equally to s/emp'd pilots - it's just that as a s/emp'd person you will have to claim the items on your return rather than just ask for the Flat Rate Expense in your code.
Golden rule - keep receipts.
For something to be eligible as an expense it must be 'wholly, necessarily and exclusively incurred in the performance of your duties'. At the end of the day if you're not sure but you think it applies, bung it down but be prepared to pull if they turn it down.
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Darren,
I'm in the same position as you having also lost my job this weekend (same airline as you!), and have been investigating accountants for the 6 months that I've been self employed, as I feel that it is v complicated and to use a professional would pay for itself in terms of credibility and what I could save vs getting investigated.
I've got an accountants name that was recommended to me by a former colleague of ours - I'm going to call them today or tomorrow. If you would like the details or to discuss further please pm me with your number and I'll call you.
Cheers.
I'm in the same position as you having also lost my job this weekend (same airline as you!), and have been investigating accountants for the 6 months that I've been self employed, as I feel that it is v complicated and to use a professional would pay for itself in terms of credibility and what I could save vs getting investigated.
I've got an accountants name that was recommended to me by a former colleague of ours - I'm going to call them today or tomorrow. If you would like the details or to discuss further please pm me with your number and I'll call you.
Cheers.
