Originally Posted by
kookiesandkreme
Surely down route expenses are tax deductible?
..and that is reflected in the way the "allowances" element of pay ( or more correctly the Time Away From Base - TAFB, payment) is taxed..
Each trip attracts an amount of money based on the time away from base.
By agreement with HMRC a percentage of TAFB payment is
not subject to tax - the percentage is based on what HMRC think is a credible down route spend on food. The percentage is not calculated on an individual basis, it's a "blanket" figure and is based on evidence from audits (see last para).
HMRC tax the remaining percentage of TAFB as if it is income.
HMRC monitor the spend by running regular audits where they ask, well demand, that selected crew members produce receipts for their spend down route..their aim being no doubt to increase the percentage of the time away from base payment that is taxed as income.