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Working in the aviation industry can be an enjoyable and rewarding experience. As with similar careers, it has its attractions, thrills and perks, but it also has its drawbacks. Income varies but is generally well above the UK average. You work unusual hours, but you get to travel the world!
This role also offers unique financial challenges, mostly relating to tax and accounting matters. If you're an airline pilot or aircrew member, Auditox Accountancy can take all of the stress and hassle out of these processes. Our specialist accountants for pilots are well-versed in the intricacies of aviation industry accounting and will offer expert guidance and support on every aspect you can think of.
The following sections spell out exactly how we can assist you.
Paying your taxes is unavoidable, but why should you pay more than necessary?
Our specialist accountants will examine your unique tax situation and explore ways to reduce your tax liability using methods and schemes allowed by HMRC.
Yearly tax planning makes good sense, as it helps you to prepare for your future and manage your finances better. Our accountants will assist you in planning your tax affairs, check for any possible deductions, and plan for any future expenditure.
While this is important for everyone, the need for transparency and accuracy in certain industries tends to be more pressing, and this includes airline pilots and other professionals in the aviation industry.
You are expected to adhere to the best practice regulations as stipulated by the Industry Accounting Working Group (IAWG), which is a division of the International Air Transport Association (IATA).
The IAWG issues airline disclosure guides that must be followed to the letter.
We will help you comply with UK tax law in accordance with the IAWG accounting guidelines and advise you on tax matters relating to UK and overseas income. While the UK has a double taxation agreement with most other countries to reduce the risk of paying tax twice on the same income, this doesn't apply to all countries.
Our accounting solutions include sound advice to ensure compliance with tax legislation to avoid any repercussions and penalties.
Dealing with expenses is generally a difficult and frustrating process.
Our expert accountants for pilots will remove all of the stress by advising you on matters such as fixed rate or flat rate expenses (FREs) and let you know which items you are allowed to claim tax relief for. This includes things like professional subscriptions, cleaning of uniforms, training, upgrading licences, etc.
We help pilots and aircrew to plan for the future, not just in relation to their employment, but also for when they wish to retire. Personal financial management and planning are equally as important - if not more so - as they affect your standard of living when you no longer have an income from your work.
We will offer helpful advice on maximising your assets in readiness for that time.
Becoming an independent contract pilot is an attractive proposition for many people. While you may not have the same level of job security, you get to work with different companies and have a greater level of flexibility. You can choose to work as a limited company or through an umbrella company - or both!
However, you'll have to handle all of your accounts and taxes as an independent airline pilot contractor, which can be daunting, especially if you're not familiar with the processes. You'll also need to track income from different companies and sources, particularly any foreign payments,
We'll be on hand to offer professional accounting advice and support in all of these areas, allowing you to maximise the benefits and avoid all the hassle!
Many pilots and aircrew are shocked to discover how much administration and paperwork (bookkeeping) there is to do, depending on your employment status and income sources.
Accurate record-keeping is essential, not only to ensure compliance with IAWG accounting guides but also to make life easier when it comes to completing tax returns.
We provide easy-to-use cloud-based accounting software that helps you to keep on top of your accounts. You will have secure access to all of your financial data from a range of devices, putting you in full control.
Although the threshold for VAT in the UK is £85,000, you may wish to register even if you earn less than this.
We will advise you on the benefits and drawbacks of this option, and help you to register if necessary.
We will also complete and submit your VAT returns for you on time, saving you time and frustration!
Whether you're self-employed, establishing a limited company or starting work with one of the large commercial airlines, there can be a lot of form-filling and procedural tasks to fulfil.
Here are a few examples of what we will do for you:
We will discuss the pros and cons of becoming a limited company and offer our best advice on whether it's the right move for you.
You may wish to remain self-employed, and that's fine if it works well for you. The main issue is that you are aware of the facts and able to make a sensible business decision.
Many pilots and aircrew staff working in the UK have their homes overseas, and this can result in tax complications.
For example, you may be paying UK tax under the PAYE scheme, despite not being a UK resident. We will help you to claim back a portion of the tax deducted in relation to the flying time outside of the UK. This only applies if you have not moved to the UK and settled here permanently with your family.
We can also help British nationals negotiate the complexities of claiming tax relief in the UK when they have made their home overseas. It can be difficult to establish residency status, but we will guide you through the pitfalls to reach a successful solution.
Running your own limited company is a good way of establishing yourself in the world of aviation, but there are several different structures you can use.
These include partnerships, sole proprietorships (or sole traders), and limited liability partnerships.
Choosing the right structure is a critical aspect of running a successful business, but this can change over time; what suits you now may not necessarily be the best option a year from now.
Our expert accountants will examine your company structure and advise you as to the best way forward. They will reassess this periodically if there are any changes in key areas, such as taking on more employees, partners or stakeholders.
If you are self-employed or earn over £100,000 per year, you will need to complete and submit an annual self-assessment tax return. You have a ten-month gap - from April 6 to January 31 the following year - in which to complete this task, although it's better all round if it is done sooner rather than later in the tax year.
Most people, however, tend to leave this job until the last minute as it can be complex, time-consuming and frustrating.
Your dedicated Auditox accountant will help you to complete it accurately and submit it in good time, as this will help to avoid penalties and make tax planning easier.
In 2016, the Civil Aviation Authority (CAA) introduced new measures to improve the standard and accuracy of data from ATOL members. This is known as the ATOL reporting accountants scheme, and all ATOL members must use an accountant who has attended specific training courses and gained relevant qualifications. The CAA will not accept any reports submitted by an accountant who is not trained, qualified and acknowledged by an appropriate professional accounting organisation.
As one of the firms licensed to deal with ATOL returns, we can be trusted to handle your accounts accurately and professionally.
Auditox accountants for pilots are highly qualified with a great deal of experience in public accounting, and each one is a registered ATOL reporting accountant. So, like qualified chartered accountants, they specialise in dealing with a particular field of industry.
This means that they are able to offer expert accounting services to aviation professionals, whether they run their own limited company or work for commercial airlines.
Our growing client base includes premier helicopter service companies, airline pilot contractors, and all manner of aviation industry professionals.
We are ready to help you with the financial side of your career in aviation, whatever your professional role may be. Unlike some other accounting companies, we don't use temporary employees or general accounting staff for tasks such as VAT returns or self-assessment tax returns.
Contact us now for a chat about your personal needs and requirements, and we'll put together a plan that suits your individual circumstances. We offer advice, support, online resources and other services that will help your career take off and reach new heights.
In the UK, aviation tax pertains specifically to areas like Air Passenger Duty (APD) and the unique tax considerations for pilots, such as residency rules and overseas income. It's distinct from standard tax regulations which might apply to regular employment.
Yes, in the UK, pilots might be eligible for specific tax reliefs on certain expenses related to their profession, such as uniform costs, licensing fees, and certain training costs. The exact reliefs available can depend on individual circumstances and specific employment contracts.
In the UK, pilots can typically claim tax relief on travel expenses for layovers and overnight stays if these are necessary for their work and not covered by their employer. This includes costs like hotel accommodations and meals.
While the UK doesn't have a foreign earned income exclusion like the US, British pilots flying internationally need to be mindful of residency rules. Depending on the number of days spent in the UK, a pilot's overseas earnings may be subject to UK taxation. Double taxation agreements exist to ensure pilots aren't taxed twice on the same income.
In the UK, aviation tax pertains specifically to areas like Air Passenger Duty (APD) and the unique tax considerations for pilots, such as residency rules and overseas income. It's distinct from standard tax regulations which might apply to regular employment.
Yes, in the UK, pilots might be eligible for specific tax reliefs on certain expenses related to their profession, such as uniform costs, licensing fees, and certain training costs. The exact reliefs available can depend on individual circumstances and specific employment contracts.
In the UK, pilots can typically claim tax relief on travel expenses for layovers and overnight stays if these are necessary for their work and not covered by their employer. This includes costs like hotel accommodations and meals.
While the UK doesn't have a foreign earned income exclusion like the US, British pilots flying internationally need to be mindful of residency rules. Depending on the number of days spent in the UK, a pilot's overseas earnings may be subject to UK taxation. Double taxation agreements exist to ensure pilots aren't taxed twice on the same income.