Pilot FRE Tax Break UK HMRC

[zerotohero]

This might not be the right place to post? Apologies if not.

I currently claim the tax break under the HMRC FRE which gives me an extra £1022 per year before paying tax to cover expenses incurred in the job.

I have heard from a number of pilots that when your Gross pay goes over £100k this is removed. However I can't find any reference to this on HMRC's website or here or any google search? I also can't understand why it would be removed as those costs would still be there.

Is this just an old pilots tale that has gathered momentum or is there truth in this? My further understanding (from other pilots) is that if you take any amount over your £99,999.99 gross and throw it straight into your pension then you keep the FRE amount as your under the £100k mark still. However again I find nothing supporting any of this on HMRC's website.

Anyone any real info on this that can be backed up with a link to HMRC etc?

[Bealzebub]

No it is not true.

The FREA (Flat Rate Expense Allowance) is an agreed rate (between HMRC & BALPA) for uniformed airline crew in the U.K. You need to claim it as part of your Self assessment annual return. You are not obliged to claim it and isn't an automatic allowance. The premise is that you are claiming for allowable workplace expenses under one umbrella. If you wish to, you can make an individual claim based on your own circumstances (but not both, bar two specific items). you can claim the FREA irrespective of your salary. The only notable thing that I can think of that does occur at the 100k net adjusted income threshold, is that your personal allowance reduces by £1 for every £2 you earn above this figure until it completely disappears at around £123,000. Income within this margin is effectively (because of the loss of personal allowance) taxed at an equivalent (and outrageous) rate of 60%! However do not confuse this loss of personal allowance with FREA which is not the same thing and actually helps your adjusted income threshold.

My further understanding (from other pilots) is that if you take any amount over your £99,999.99 gross and throw it straight into your pension then you keep the FRE amount as your under the £100k mark still. However

No. The FREA has nothing to do with the amount you earn or pay into your pension.

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim50052

You might also look at claiming £110 under the Additional allowance for travel costs to certain regular specified activities. Also note that the FREA may be adjusted downwards if your employer pays any of the expenses that the FREA is meant to cover.

[OhNoCB]

One thing to add is that instead of claiming it every year on a self assessment, if you have no other reason to do a SA then you can phone HMRC and get them to add this and also the additional £110 to your tax code. This is what I have done.

[B2N2]

Am I the only dyslectic pilot that read the title as 'Pilot Freak'

[zerotohero]

Thanks for the info guys. I was hoping that was the reply.

I am not sure I can justify the extra £110 a year for travel as everything is taken care of by the company in that respect for every duty except medical.

I can add on the provision for noise canceling headset though as I have a Bose A20 due the poor quality of the ones in the flight deck so I might give them a ring today and see about that.

[Jinkster]

Does anyone have a sample letter to send to HMRC?

Thanks

[bex88]

You can earn 100k without loosing your personal tax allowance. The FRE is separate. Once over 100k you loose your personal allowance in a sliding scale. The trick is that everything you put into your pension is not counted up to your annual allowance. You can put 40k a year into a pension, so if you earn 140k and put 40k into your pension you keep all your allowance. After that....well lucky you, go part time.

[back to Boeing]

Does anyone have a sample letter to send to HMRC?

Thanks

yes. BALPA does

[Sharklet]

Does anyone have a sample letter to send to HMRC?

Thanks
​​​​​​
Hi mate,
Let me know if you still need a sample letter. I can provide you one from BALPA.
Regards,
Sharklet

[back to Boeing]

Or you know... Join the union that has campaigned for it and get it that way..

Wot ee sed.

I’m getting fed up of people saying “I don’t believe in unions” but will happily take the pay rises, the t’s and c’s, the scheduling agreements the top cover, the national campaigning etc etc etc.

Yes i I am a member, no it’s not perfect, in fact I have some significant grievances against the place. But I’m a member, I support my reps and I support my fellow pilots.

For or those that don’t “believe” in unions, it’s not a religion. You don’t have to “believe” in anything. Your salary and your working life should be evidence enough. Join or refuse the pay rise next year and negotiate your own T’s and C’s. see how far you get.

[Jinkster]

yes. BALPA does

Thanks I'll look on the website.

[olster]

For uk pilots Balpa is the least worst solution to deal with increasingly cutthroat ‘management.’ Forget all the urban mythology ref British Airways etc. Better in than out for the pilot community in my very humble opinion.