Originally Posted by sixmilehighclub
The figure for this fixed allowance payment is about £8k per annum I believe. This will be fully taxable under UK taxation, unlike now where allowances are partially non taxable, as most of the allowances are triggered overseas.
The tax system allows for crew pay to be a little higher. Under the new system it would result in loss of pay.
I'm not 100% certain, but I think you may have misunderstood (or been misled) this fixed payment.
As I understand it, and am more than happy to be corrected, this fixed payment is to replace things like box payments and b2b payments on LH, and things like long day, CAT payments etc on SH. It is
NOT to replace meal allowances.
As far as tax goes, it is the meal allowances that attract a lower rate of tax, because the idea is that crew spend them on food overseas, and it is not part of their income (although the tax receipts exercise showed the truth of the matter, hence the adjustment)
I understand that things like box payments and CAT payments are taxed normally, because they are just part of pay, and not for subsistence.
I predict that if this system comes in, then overnight the most popular trips will become the shortest ones, tempered by a factor taking in to account meal allowances. For example, if you are on a fixed payment, why have the drag of going all the way to NRT if it makes no difference in terms of box payments? I reckon middle east trips with expensive hotels "to eat in" will become the prime trips.