BA Future Pilot Programme (FPP)(Merged)
Join Date: Dec 2011
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Age: 39
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FateHunter - thanks for the spreadsheet. It's been very helpful, and I won't quote you if its crystal ball qualities are a bit wide of the mark in 7 years' time. I did take into account that the security bond is paid back tax-free, and I've re-done the maths to check my figures. I think £1,100 is enough to live on, just, but only if you share a house (which may be stating the bleeding obvious).
Ham Phisted - the helpful Senior FO I was talking to was a shorthaul pilot (A320).
Any other comments are very welcome. If I don't ask, then maybe no one will, and I'm sure there are others who are also chewing over how to make the dream happen without being consigned to a nasty bedsit under a railway bridge.
Ham Phisted - the helpful Senior FO I was talking to was a shorthaul pilot (A320).
Any other comments are very welcome. If I don't ask, then maybe no one will, and I'm sure there are others who are also chewing over how to make the dream happen without being consigned to a nasty bedsit under a railway bridge.
Join Date: Oct 2011
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Again, thanks Fate_Hunter for the spreadsheet, it saves me a job. Although, I was hoping to stop my affair with spreadsheets once I start on BA FPP.
Just out of interest, if you were only to take a £63,030 loan from BBVA, BA's repayments of £1000 would cover the bank payments and you might be able to afford a campervan situated outside Heathrow.
(Obviously, this does mean you need a spare £20k-plus sitting around to make up the course costs and living expenses.)
Just out of interest, if you were only to take a £63,030 loan from BBVA, BA's repayments of £1000 would cover the bank payments and you might be able to afford a campervan situated outside Heathrow.
(Obviously, this does mean you need a spare £20k-plus sitting around to make up the course costs and living expenses.)
Join Date: Apr 2006
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@Fate Hunter & covad83 - thanks for the insights regarding the loan; very helpful. Time to stock up on cat food for the next few months methinks.
I wonder if any of our lucky peers who have been offered the first course with FTE would care to share with us whether any more 'instructions' have been forthcoming in your recent correspondence [for example: "if you want to contact BBVA regarding a loan, here are the details of the individual(s) to talk to", or "please get your Class 1 medical sorted ASAP" or "this is what you can next expect to happen"].
Of course, please don't go publishing anything that could be considered confidential for the sake of satisfying my curiosity (eg: individual BBVA staff contact details)!
I wonder if any of our lucky peers who have been offered the first course with FTE would care to share with us whether any more 'instructions' have been forthcoming in your recent correspondence [for example: "if you want to contact BBVA regarding a loan, here are the details of the individual(s) to talk to", or "please get your Class 1 medical sorted ASAP" or "this is what you can next expect to happen"].
Of course, please don't go publishing anything that could be considered confidential for the sake of satisfying my curiosity (eg: individual BBVA staff contact details)!
Join Date: Dec 2006
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Well don't forget the loan repayments are made to you as one payment but it's made up of two parts. Firstly, capital repayment and secondly an interest payment. HRMC will be very interested to know why they are paying you interest on the loan "tax free". Capital payment is tax free as it's just your money (that you've borrowed) coming back to you £ for £.
Join Date: Dec 2010
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londonmet
BA repay only the £84k initial loan, i.e. the capital payment you refer to.
They do not cover any interest accrued during that time. If I'm wrong then I'm a much happier bunny.
BA repay only the £84k initial loan, i.e. the capital payment you refer to.
They do not cover any interest accrued during that time. If I'm wrong then I'm a much happier bunny.
Join Date: Mar 2011
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4015
You are correct, the repayment from APL is just them returning your bond which is why it is tax free. If you have had to take out a loan to cover the bond then this will be equivalent of the capital you have to repay. You must pay the interest accrued on the loan out of your salary which is taxed by HMRC.
You are correct, the repayment from APL is just them returning your bond which is why it is tax free. If you have had to take out a loan to cover the bond then this will be equivalent of the capital you have to repay. You must pay the interest accrued on the loan out of your salary which is taxed by HMRC.
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And if it's left to you to fund out of your NET salary you'll be worse off. The 20% with holding tax due on the interest payments that's levied under the traditional APL makes it easier on the individual.
Join Date: Feb 2006
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Tax liability
The answer in FAQs on the BA FPP site is quite clear in this, quote:
Remember that as well as pay and allowances, British Airways will pay you back your security bond, tax–free, at the rate of £12,000 per year for the first seven years of your employment as a pilot.
How the bond is funded is entirely the decision of the trainee pilot; if through a commercial loan, whether or not BA act as guarantor, interest will accrue over approximately 9 years from the start of the course. Fate Hunter's spreadsheet provides a guide as to the overall likely cost, including interest, albeit at rates which some may view as conservative.
Anyone lucky enough to have access to the necessary funds without taking out a loan will, of course, lose out on any interest and/or dividends which would have been paid over that same period of time.
Remember that as well as pay and allowances, British Airways will pay you back your security bond, tax–free, at the rate of £12,000 per year for the first seven years of your employment as a pilot.
How the bond is funded is entirely the decision of the trainee pilot; if through a commercial loan, whether or not BA act as guarantor, interest will accrue over approximately 9 years from the start of the course. Fate Hunter's spreadsheet provides a guide as to the overall likely cost, including interest, albeit at rates which some may view as conservative.
Anyone lucky enough to have access to the necessary funds without taking out a loan will, of course, lose out on any interest and/or dividends which would have been paid over that same period of time.
Join Date: Aug 2011
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You're right - I think all this discussion of tax on bond repayments is immaterial, as BA have made it quite clear that the monthly repayment of £1,000 will be made to the employee tax-free. The further implication is of course that anybody with a loan will be responsible for meeting any additional costs associated with this (interest charges and higher capital repayments) themselves (out of any income, which will have been taxed as normal).
By the way, as a complete side point, withholding tax can apply to interest payments as it's just a term that refers to tax being 'withheld' by the payer of a sum before being paid to the government. Not that this application is relevant here - I'm just getting sidetracked by my 'love' of finance.
By the way, as a complete side point, withholding tax can apply to interest payments as it's just a term that refers to tax being 'withheld' by the payer of a sum before being paid to the government. Not that this application is relevant here - I'm just getting sidetracked by my 'love' of finance.
Join Date: Dec 2005
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£8,000 - £10,000 of flying allowances are typically earned in a year. Do we have to use these flying allowances to pay for food and drink on overnight stays away from home or does BA allow pilots to claim back expenses separately?
I'm just trying to work out if the £8000-£10000 is effectively an add on to our salary or whether the flying allowance is paid instead of pilots claiming back expenses at the end of a trip.
I'm just trying to work out if the £8000-£10000 is effectively an add on to our salary or whether the flying allowance is paid instead of pilots claiming back expenses at the end of a trip.
Join Date: Sep 2007
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I think only a small part of the allowances are tax-free, the duty pay (£2.xxph) perhaps? I was under the impression that flying pay (£9ph) is taxed. I'm sure someone on the inside can correct me!
Join Date: Sep 2007
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Unfortunately that could be sad news for some or even all of BMI's staff, we will have to wait and see.
Will it effect the FPP, who knows, any one who has a answer is giving a Wild Ass Guess....
As t Flight Pay, well according to HRMC it depends on your Airlines deal with them, more here: Employment income: scale rate expenses payments: accommodation and subsistence payments to employees travelling outside the UK: Airline employees: relationship with Flight Duty Allowances
Will it effect the FPP, who knows, any one who has a answer is giving a Wild Ass Guess....
As t Flight Pay, well according to HRMC it depends on your Airlines deal with them, more here: Employment income: scale rate expenses payments: accommodation and subsistence payments to employees travelling outside the UK: Airline employees: relationship with Flight Duty Allowances
Flying pay is treated as part of your normal pay taxed in the normal way.
Currently HMRC levies tax on approx 20% of your "allowances"/ "time away from base payment". The remainder is not taxed since the HMRC assume that you spend that money on subsistence down route....
Currently HMRC levies tax on approx 20% of your "allowances"/ "time away from base payment". The remainder is not taxed since the HMRC assume that you spend that money on subsistence down route....