HMRC Flight pay
Historically, flight pay/duty pay/sector pay used to be tax free as it was a payment to cover out of pocket expenses while on duty. Over the last few years this has slowly been eroded to the point where within my airline we are now paying tax on 100% of the flight pay element yet the out of pocket expenses have remained unchanged. I still have to live when night stopping either in the UK or in foreign parts. I am aware that some UK airlines still enjoy a tax free element of flight pay. It would therefore be of interest to know a) why there appears to be an unequal playing field and b) which companies are or are not in continued receipt of a tax free element to their flight pay. Comments anyone.........