Working in the aviation industry is full of unique financial challenges, particularly for pilots working on a self-employed basis or through their own limited company.
There has been a significant increase in demand for airline pilot contractors over recent years as more and more private and commercial airlines look to take on independent contract pilots.
Equally, there are a number of pilots who prefer to operate as contractors until they find an employer that they’re happy to commit to over the long term.
Managing your finances in this demanding environment can be tricky business, particularly whilst trying to establish a growing client base and relationship building with partners.
At Gorilla Accounting, our expertise has seen us working with pilots from across the UK, from the initial business incorporation and bank account creation to preparing annual tax returns and HMRC records checks.
Unlimited access to your Dedicated Accountant
Once you’ve completed the initial steps of registering with Gorilla Accounting, you’ll be allocated a dedicated personal accountant who will work with you to understand each independent facet of your business.
Unlike other similar online accountancy services for pilots, you’ll have a direct dial telephone number that you can use to reach out to your accountant throughout the week. This unlimited service falls in line with our transparent structure so you’ll never be charged additional fees for advice.
As a 360 degree accountancy service, we can help with:
- Incorporating your business with Companies House
- VAT returns
- Business bank account creation
- Corporation Tax returns
- Payroll (where needed for up to two employees)
- Dividend documentation
- Tax planning advice
- Reminder services for deadlines and payments
- Quarterly review of bookkeeping data
Manage finances on the go with FreeAgent
As part of our commitment to helping clients manage their finances, a full FreeAgent subscription is included with our fees.
This market leading accountancy software can help you to manage your finances on any smart device, so whether you need to check your business balances, upload receipts or begin preparing your tax returns, FreeAgent can help.
What’s more is that all of your financial details will be protected by 256-bit encryption – the same used by the global banking sector – giving you the peace of mind that your personal data will always be protected.
Independent contract pilots
Operating as an independent contract as a pilot is common. This methodology of employment offers substantial benefits mainly being able to dictate where and when you work, with many contracts offering different time scales so that you may tailor how long you are contracted with any particular company. Furthermore, contracting as a pilot means that you can experience working with a range of different companies without committing to just one so that you can find the one which best suits your lifestyle. Related to this, operating on a contractual basis enables you to establish a strong network of contacts by liaising with different companies.
In summary, working as an independent contract pilot offers numerous benefits, particularly offering the potential to attain higher rates of pay. You may increase your tax efficiency by operating as a limited company. However, due to the complexity of the paperwork required, we highly recommended seeking advice from a specialist accountancy firm who can tailor their services to your bespoke demands.
Pilots working as a limited company
Operating through a limited company offers increased control of financial management and tax efficiency. Although operating through a limited company demands increased levels of responsibility and financial administration, this is often difficult for pilots who experience unconventional working hours and are in demand worldwide. Despite this increased responsibility, the benefits of operating as a limited company are summarised below:
- Compared to working with an Umbrella agency, operating as your own limited company typically offers the possibility for higher take-home pay
- By working as a limited company, you are able to claim on a larger range of expenses, with training courses, uniform, pilot materials and meals often being encompassed as claimable expenses
- Most contractors opt for the flat rate VAT scheme to maximise extra revenue per annum. Working as a limited company offers the ability to apply for the flat rate VAT scheme
- An obvious benefit of working as a limited company is complete control of your business and financial management. This offers greater availability for tax planning
- Increased control and greater opportunities for tax planning by efficiently reviewing financial statements throughout the year
By working with a specialist accountant dedicated to your limited company, the volume of paperwork can be significantly reduced. Other services an accountant who specialises in helping contractors are as follows:
- Complete support with financial management, tax planning and maintaining the business accounts
- Advice on superior and assistance with setting up online packages to effectively track income, expenditure, and outgoings
- Stress-free submission of the required paperwork to Companies house per annum. With support offered for the filing of accounts, company tax and calculation of corporate tax
- Assistance with other matters such as the provision of references for rental properties or any other guidance related to compliance
What Next?
Appointing Gorilla Accounting as your pilot accountant is now easier than ever before. Register today and benefit from our full package from just £110 + VAT per month whilst those taking on an annual subscription will receive a valuable 10% discount.
For more information, complete our initial online application form and a specialise will be in touch to discuss how we can help you to manage your business finances.