UK taxation of benefits
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Join Date: Nov 2004
Location: Liverpool
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UK taxation of benefits
I'm wondering who is getting taxed on what?
In some companies you pay no tax on allowances but in others you pay tax on a percentage. You hear of pilots getting substantial lumps of sector pay untaxed, which it shouldn't be. Loss of licence insurance is taxed in one company but not another.
If a pilot in Company A gets taxed on his insurance and his mate in Company B is not, can he appeal on the grounds of unfair treatment?
Any thoughts/comments much appreciated, particularly from any tax accountant or tax inspector turned pilot!
In some companies you pay no tax on allowances but in others you pay tax on a percentage. You hear of pilots getting substantial lumps of sector pay untaxed, which it shouldn't be. Loss of licence insurance is taxed in one company but not another.
If a pilot in Company A gets taxed on his insurance and his mate in Company B is not, can he appeal on the grounds of unfair treatment?
Any thoughts/comments much appreciated, particularly from any tax accountant or tax inspector turned pilot!
Join Date: May 2000
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It depends entirely on the company's agreement with Revenue and Customs I believe - depending upon route structure and cost of overseas nightstops etc.
Doubt you would be able to appeal as the whole package is what they look at. Ask a tax professional if you are considering some action.
Doubt you would be able to appeal as the whole package is what they look at. Ask a tax professional if you are considering some action.
Join Date: Oct 2003
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My understanding is that Lucifer is correct in that the revenue agree a package which applies to all in that company.
I was however told that if an individual feels he is paying too much tax, he can submit an individual claim, but he cannot "mix and match" between the two.
In other words you cannot accept the dry cleaning allowance in the approved package but appeal against the LOL.
You would have to justify every item as being necessary exclusively for the purpose of the job etc. etc., including producing receipts for the dry cleaning, and all meals in restaurants overseas.
I was however told that if an individual feels he is paying too much tax, he can submit an individual claim, but he cannot "mix and match" between the two.
In other words you cannot accept the dry cleaning allowance in the approved package but appeal against the LOL.
You would have to justify every item as being necessary exclusively for the purpose of the job etc. etc., including producing receipts for the dry cleaning, and all meals in restaurants overseas.
