Tax advice.

[hammerheads]

With regard different answers from HMRC im not surprised chances are person you spoke did not know the answer. There is a lot of moving of staff from customs to revenue work and vice versa going on at present and its leading to mixed messages coming out when you make a telephone enquiry.

You need to do the following

1. Register with HMRC as a self employed diving instructor
2. Be aware that if your diving for free say with free air fills and free entry to dive sites or having your dive site entry paid for you then you are receiving a form of monetary payment and this should be declared in its monetary value
3. Your subscriptions to PADI or any agency, Course fees and course materials, professional insurance and travel to dive sites for courses, servicing, air fills etc would all be tax deductable as would your diving equipment. If you go on a trip abroad and end up teaching you could claim that element of the trip.
4. Keep proper records, for example all your receipts and details of the calculations you use to work out what percentages you claim. If they can be justified and are sensible then it would be difficult for HMRC to argue against them.
5. If you have exisiting diving equipment I would suggest if you intend to keep your own records to introduce this equipment at cost to your business less an allowance or percentage for its current condition

Duality of purpose will also figure into diving equipment and diving expenses as not all diving will be training courses or working on training courses so you wil have to work out how much of your diving is recreational / working / training and claim a suitable percentage. Same with your fuel etc etc.

I hope this helps you out a little

[finbar.taylor]

what about claiming it as ex[pences and your employer claiming the tax of it?

or going self employed?

give me a shout as I've been through it and there are several options to try but it's a lot to type!

Fin

[Paul Evans]

My professional body has an agreement with Inland Revenue that we can claim back tax on our professional registration and membership and this is for both Occupational Therapist that are employed on PAYE and self employed Occupational Therapist.

As without our registration we are unable to work which I would assume is the same as an professional instructor?

Thats why i think you can claim it, the medicals are another matter, the revenue will probably say your employer should be paying for them?

As I said on the dog its a pain being PAYE.............

[chas49]

The guidance on the HMRC website may help - HM Revenue & Customs: Introduction to tax allowances and reliefs

Essentially if you're employed, you can claim relief on certain expenses provided they are incurred "wholly, exclusively and necessarily" in the performance of your employment.

I think this probably rules out servicing and training.

You may be able to claim relief on the cost of kit - if it falls into the definition of "specialist tools or clothing" HM Revenue & Customs: Tax relief for specialist tools or clothing - but I think you would need to agree this with HMRC in detail. A letter to them might be the best starting point.

Membership of PADI, TDI etc might come under Tax relief for professional fees and subscriptions - but it has to be an approved organisation - there's a list on the website (HM Revenue & Customs: Deductions for fees and subscriptions paid to professional bodies or learned societies). I couldn't find PADI on there

The Taxes discussion board on the Motley Fool website may be a helpful place to get advice.

HTH

[hammerheads]

Self employed is the way to go on this the PAYE route is just to complicated and you will be better off overall with the self employed option.

Wholly and Exclusively is important but it works for percentages as well dont assume just because your an instructor and you pleasure dive as well as get paid to teach that you can claim anything because your not diving wholly and exclusively for work purposess. If half you day was recreational diving and half your day was being paid to teach a course then work out what expenses were business and what was private and claim it.

Membership of PADI. TDI Etc Etc would be allowable as you need to be a member of PADI in renewed status to teach PADI courses therefore it is a requirement of business to enable the individual to trade as an Instructor.

[Spacehopper]

'er indoors says you should be able to claim your PADI membership fees but training, servicing etc is more problematic as you are not self employed. You should write in for a definative answer.

Well, what do you expect, she works for HMRC and is probably checking your tax return right now

Gareth

[Silly Car]

I registered as a self employed DM with HMRC 18 months ago and claimed a whole load of tax relief.

In the last tax year I qualified as a OWSI and I shall be claiming for all of those costs as well, next year I might make a profit

[Daniel Taylor]

There are a number of business / non-business tests need to be considered. You would need to show that you are carrying on the trade (i.e. instructing) on a recongnise commercial basis, at frequent intervals and that there is a realistic expection of making a profit [the badges of trade].

That said, having spoken to the woman sitting opposite me who was a tax inspector until very recently, the only thing that is likely to happen is that having not made a profit for a couple of years the revenue will stop the transfer of your losses to your PAYE until you do start making a profit (i.e the losses will only ever be carried forward rather than sideways).

Register for VAT [my expertise] and if it is decided that you don't pass the Lord Fisher tests then they will cancel the registration and go looking for everything that you have ever had.

Daniel

[mjgreen]

As a professional diving instructor in the UK and paying tax, can I claim back tax on things like kit, servicing, training and membership of PADI, TDI etc?

I have had 3 responses from the tax office, 'yes', 'no' and 'send us a letter'.

1 and 2 are clear cut, although contradictory, but option 3 I find a bit odd as I would have thought that I could have had answer 1 or 2 verified in principle by 'phone, then I'd could submit reciepts etc.

Anyone else been through this?

You can claim some stuff, but what you can & can't is not straight forward. Also, whether you're employed or self employed may be relevant. As Finless notes, best to get an accountant or tax adviser to take a look. I may know a tax consultant who may help with tax in exchange for some courses - can pass on details if that's of interest

[turbanator]

You can claim some stuff, but what you can & can't is not straight forward. Also, whether you're employed or self employed may be relevant. As Finless notes, best to get an accountant or tax adviser to take a look. I may know a tax consultant who may help with tax in exchange for some courses - can pass on details if that's of interest

Hi,
Thanks for the reply, but I have sorted the issue now, well I know where I stand anyway

r
P