Private individual

NCO.GEN.102(d) says "The flight must be operated by a private individual." ANO 2016 art. 13(2)(d) has the same condition. The legislation doesn't define the term, but CAP 1590 (guidance), footnote 1 explains it:

The term ‘private individual’ in the context of cost-sharing flights, refers to pilots, who may also be the operator, and who must be acting as a private individual, i.e. not an organisation or company etc.

The CAA's cost sharing web page puts it another way: "Cost sharing flights cannot form part of a business activity through an organisation."

Two related conditions reinforce this. NCO.GEN.102(e) says "No person acting as a pilot is employed as a pilot or acting under a contract for the provision of services as a pilot for the flight", and Article 6(4a)(a) limits payment to a contribution "given or promised for the flight to the pilot by the passengers".

In practice, you arrange the flight yourself, in your own name, and the passengers pay towards the direct costs of that flight. A company, club or school organising flights and collecting money is not a private individual. The definition of direct costs includes aircraft rental fees, so the rules contemplate pilots flying rented aircraft, but the flight must be your private arrangement, not the club's. Where the line falls for unusual set-ups is not settled by the sources, so take the cautious view.