Ryanair denies exploitation of Pay to fly pilots
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A lot of people run away with the odd idea that you claim back your costs,from the tax-manTHIS IS A FALLACY, IT'S WRONG
what you do claim. is the right to have that amount of your income added to your tax-free allowance. you just earn the allowable expenses tax-free, the taxman gives NOWT.
AFAIK, you still pay N.I on your actual earnings, after allowable expenses.
there is some room for manoeuver with a limited company,in that dividends are taxed differently to earned income, but Mr. Revenue is in dire need of every penny he can screw out of the taxpayer...not sure if he hasn't plugged that loophole already.
You will not get more than you earn....under PAYE , you are effectively assessed as if you will continue to earn the same for the rest of the tax-year, as you've earned to date...thus your average pay for the year is recalculated every pay-period....say you earn 10K a month for the first 3 months ...you're taxed as if you're earning 120K...so a goodly chunk will be taxed at higher rate.....so you're made redundant and 3 months later, restart worka few days before payday....your averageis only 60K per annum , but you paid higher rate tax on a much higher proportion of salary , than you would have done, had you earned at the same rate over the whole 6 months...so you get a rebate to reflect the overpayment.
Self-employed, you settle your bill once a year (though i believe you now make Quarterly "stage-payments" Generally you pay less tax.....you also get no sick pay, no holiday pay, no job security and usually no perks from your "employer" no doubt someone will correct my errors, but it will hopefully correct this impression that the self-employed get largesse showered upon them by the Revenue.
what you do claim. is the right to have that amount of your income added to your tax-free allowance. you just earn the allowable expenses tax-free, the taxman gives NOWT.
AFAIK, you still pay N.I on your actual earnings, after allowable expenses.
there is some room for manoeuver with a limited company,in that dividends are taxed differently to earned income, but Mr. Revenue is in dire need of every penny he can screw out of the taxpayer...not sure if he hasn't plugged that loophole already.
You will not get more than you earn....under PAYE , you are effectively assessed as if you will continue to earn the same for the rest of the tax-year, as you've earned to date...thus your average pay for the year is recalculated every pay-period....say you earn 10K a month for the first 3 months ...you're taxed as if you're earning 120K...so a goodly chunk will be taxed at higher rate.....so you're made redundant and 3 months later, restart worka few days before payday....your averageis only 60K per annum , but you paid higher rate tax on a much higher proportion of salary , than you would have done, had you earned at the same rate over the whole 6 months...so you get a rebate to reflect the overpayment.
Self-employed, you settle your bill once a year (though i believe you now make Quarterly "stage-payments" Generally you pay less tax.....you also get no sick pay, no holiday pay, no job security and usually no perks from your "employer" no doubt someone will correct my errors, but it will hopefully correct this impression that the self-employed get largesse showered upon them by the Revenue.
Join Date: Dec 2004
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Believe me there are ways and means of doing things like that, As a company director, you learn these things very quickly, Specially if your a limited company, If your on a zero houred contract I take it your classed as self employed? so things like rent of your "business" premise which just happens to be were you sleep is all tax deductable, Mileage for his business is all charged at 45p a mile, electric, gas etc is all on "the company" so, you might have a bit corperation tax to pay, the last thing our pilot wants to do in his first 2 years is make any sort of profit! and when he's found his job with a full contract, wind his company up!
Believe me there are ways and means of doing things like that, As a company director, you learn these things very quickly, Specially if your a limited company, If your on a zero houred contract I take it your classed as self employed? so things like rent of your "business" premise which just happens to be were you sleep is all tax deductable, Mileage for his business is all charged at 45p a mile, electric, gas etc is all on "the company" so, you might have a bit corperation tax to pay, the last thing our pilot wants to do in his first 2 years is make any sort of profit! and when he's found his job with a full contract, wind his company up!
Know someone who works as a senior exec in manufacturing business, does Interim work and he told me that he earned in excess of Ģ200 k last year and paid Ģ5k tax........all via Ltd company.
Now people will complain about what he pays and probably rightly so. But when he a full time exec in business 3-4 years ago he said was paying Ģ100k in tax.
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Believe me there are ways and means of doing things like that, As a company director, you learn these things very quickly, Specially if your a limited company, If your on a zero houred contract I take it your classed as self employed? so things like rent of your "business" premise which just happens to be were you sleep is all tax deductable, Mileage for his business is all charged at 45p a mile, electric, gas etc is all on "the company" so, you might have a bit corperation tax to pay, the last thing our pilot wants to do in his first 2 years is make any sort of profit! and when he's found his job with a full contract, wind his company up!
Rules seem different under different jurisdictions and even under the same jurisdiction (Irish Revenue) the allowable expenses depend on your accountant. I know it shouldn't be that way, but it is..
I have acquaintances doing exactly what you are saying, but the majority do not. Those propositions have been rejected by their accountants.
There are ways to boost your income as a contractor, but many of them are flat out illegal and shouldn't be mentioned here. Only should the revenue audit them would they be in trouble, unless they've been clever and used cash !!
Luke SkyToddler put it best.. a degree in tax law would certainly make life easier. All these tax issues are overwhelming for average Joe..
Join Date: Jul 2008
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Very true, some accountants let you claim a home office and some won't, some let you claim your car park pass and some won't
It's a joke really as it should be the same across the board, and the accountant is only your tax advisor so if he advised you of an expense and you disagree you should be able to submit it still and if required at a later date it's up to you to argue it out with the revenue people as the accountant advised against it
Unfortunately they are all a bunch of crooks
My biggest gripe is not been able to claim for a car when I live an hour away by car and my contract requires a one hour standby on the roster, I need a car to fulfil it there fore it's a required business cost to me
Long and short of it is though I spend far to much time worrying about this stuff and talking about it with colleagues when the time could be better spent say reading the ops manual or studying jeppy plates!
It's a joke really as it should be the same across the board, and the accountant is only your tax advisor so if he advised you of an expense and you disagree you should be able to submit it still and if required at a later date it's up to you to argue it out with the revenue people as the accountant advised against it
Unfortunately they are all a bunch of crooks
My biggest gripe is not been able to claim for a car when I live an hour away by car and my contract requires a one hour standby on the roster, I need a car to fulfil it there fore it's a required business cost to me
Long and short of it is though I spend far to much time worrying about this stuff and talking about it with colleagues when the time could be better spent say reading the ops manual or studying jeppy plates!
Join Date: Dec 2004
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Its not a fiddle or a tax dodge, its use using the system claiming the benefit in kind, not illegal, I use an accountant and so books are fully audited, if you paid everything you would earn nothing, look at good old vodafone, boots, etc etc,they pay very little tax, do they get investergated............. the answer to that is no!
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Come again mate ? what was it I said that you wish to disagree with ? or you have responded to something I said on another thread you don't like ? ? 
certainly can't see/understand your gripe about what I have posted here.
Read the contract before you sign it, if you feel you will be exploited, make a different choice. . . simple, no ?
certainly can't see/understand your gripe about what I have posted here.Read the contract before you sign it, if you feel you will be exploited, make a different choice. . . simple, no ?
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The tax situation is far from straightforward really. Deductions, accountants, whatīs ok and whatīs not ok? Add to the mix different countries with slight differences in legislation depending on the country.
A bit like making Mojitoīs at a party, once you get the ingredients in the mixer and start the process and as people hear the noise they gather around you saying things like ohh that looks nice and i would love one. But it is a very difficult drink to make as it can very easily be to sweet, to sour, to salty, not enough booze, too much booze. All depends on the crowd in the end.
A bit like making Mojitoīs at a party, once you get the ingredients in the mixer and start the process and as people hear the noise they gather around you saying things like ohh that looks nice and i would love one. But it is a very difficult drink to make as it can very easily be to sweet, to sour, to salty, not enough booze, too much booze. All depends on the crowd in the end.
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"too much booze". . . . . . ? sorry, you have lost me there 
actually, I know what you mean, Riga "Long Island Ice Tea" in the "airBaltic bar", I'm enjoying this, take your time to enjoy it they said, or you won't remember the 3rd one . . . . . . they were right 
actually, I know what you mean, Riga "Long Island Ice Tea" in the "airBaltic bar", I'm enjoying this, take your time to enjoy it they said, or you won't remember the 3rd one . . . . . . they were right
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Never really understood these ultra liberal views where it is assumed people have unlimited choice in some kind of utopia where you can pick and choose freely. Jobs for everyone and if you donīt like something just change. Reality looks different.
Many issues are due things which would not be acceptable anywhere else in society so why should it be in aviation?
Many issues are due things which would not be acceptable anywhere else in society so why should it be in aviation?
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Not acceptable in aviation, nor in the rest of society, but. . . as far as I have seen in life, it is no different (indeed even worse ) in other professions. It is good to bring attention to the 
that goes on in aviation, but very inward looking to think we are the only ones to suffer this in the 21st Century. . it is all around us. As you are Spanish ? ask your companeros how is the life outside of aviation. . . I suspect (sadly) no great difference, except, in the piloting profession "how much you know" can be (partially nowadays) replaced by "how much you pay". . . in life in general "what you know" is still replaceable by "who you know" (Ooops sorry, Yeah that seems to work in aviation too last time I checked. )
that goes on in aviation, but very inward looking to think we are the only ones to suffer this in the 21st Century. . it is all around us. As you are Spanish ? ask your companeros how is the life outside of aviation. . . I suspect (sadly) no great difference, except, in the piloting profession "how much you know" can be (partially nowadays) replaced by "how much you pay". . . in life in general "what you know" is still replaceable by "who you know" (Ooops sorry, Yeah that seems to work in aviation too last time I checked. )
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i donīt know captplaystation if there are other professions where new grads have to spend a mid range five digit number just to smell the working environment?
Not Spanish although wish i were sometimes
Not Spanish although wish i were sometimes
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The english taxation system allows a proportion of car expenses, tax free (tax -deductible, if you prefer) that proportion has to be exclusively the proportion used for business....so Mr. self-employed is supposed to take start and stop odometer-readings every time he jumps in the vehicle (note I didn't say "car" 
) and annotate the purpose of the journey.
Overall, the taxman is reasonable....I had a bit of a row on one occasion when he disallowed tea, sugar and milk costs (very modest!)
I suggested that the Ford Motor Co's Chairman's office cocktail cabinet full of Whiskey, Brandy and the like, would not be disallowed.
I also asked if toilet rolls were going to be disallowed, and could I claim a portion of my haircut costs as my working-week was 50% of the total "growing time"
Didn't get the brew allowance , but the bogrolls were allowed
) and annotate the purpose of the journey.Overall, the taxman is reasonable....I had a bit of a row on one occasion when he disallowed tea, sugar and milk costs (very modest!)
I suggested that the Ford Motor Co's Chairman's office cocktail cabinet full of Whiskey, Brandy and the like, would not be disallowed.
I also asked if toilet rolls were going to be disallowed, and could I claim a portion of my haircut costs as my working-week was 50% of the total "growing time"
Didn't get the brew allowance , but the bogrolls were allowed
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All this energy on minutiae. Perhaps an equal amount of energy might be better spent on attesting if you are indeed legally self-employed or even legally a one man Ltd. company with only 1 allowed customer.
Would you not rather be an employee with all the associated employee protections, instead of being out in the cold to fend for yourself.
Would you not rather be an employee with all the associated employee protections, instead of being out in the cold to fend for yourself.
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He probably would,if it was an option, but I don't think it is up for grabs. . . .yet. Lets see what happens when all the European Govts realise how much more they could have if the company & the individual were contributing (rather than both being one & the same person)
I have the feeling this may all change in the next few years, but, will we be better off ? somehow I have my doubts on this one.
I have the feeling this may all change in the next few years, but, will we be better off ? somehow I have my doubts on this one.