"Per Diem"
 

Hello,

I have a question about "per diem". Is this some kind of an allowance for a night stop or is it just an allowance for every day you fly??

grtz

Latin for per day. Simply put it normally refers to a daily allowance. Whether its payable for night stops only would depend on the individual company.

Most companies that I have flown for it was paid either per hour on duty or in blocks of "part" days - for example 0-4 hours so much, 4-8 hours so much etc etc.

Ours is a flat rate per hour from the time we go on duty (=1 hour before offblocks) to the time we go off duty (=30mins after onblocks).

Some companies pay it as a daily allowance (for instance if you go via a contracting co, you may get a daily allowance of $50 a day or something for every day spent on base including your days off; but not on holidays!)

Otherwise, some companies pay you for nights away from base only but still refer to it as a per diem or 'overnight allowance'

Some questions for any UK tax payers receiving per diem.
If you receive a fixed amount when you're on duty (eg £30 per day), is this per diem taxable? Is there a maximum value that the Inland Revenue will allow for meals etc before deducting tax? Does the employer have to make a case to the IR to provide a tax-free allowance?
I heard a rumour from one jet charter operator that they receive per diem tax free.
I don't want to pay the evil tax man any more than I can help!!

155 Man.
It's my experience that such things are entirely at the discretion of ones employer, who will reserve the right to change his mind as and when he pleases. http://www.pprune.org/forums/images/smilies/evil.gif
Besides... "It's to pay for your expenses - not to make you money !!! http://www.pprune.org/forums/images/.../eusa_wall.gif
But seriously, if anyone does have any experience of a UK company paying per diems or similar allowances tax free please post it!
Cheers

Individual airlines have struck individual deals with UK Revenue for a certain allowed untaxed flight pay or duty pay allowance, everything else or anything over this is taxable. Even though the allowances are similar, there is no one-size-fits-all answer, so talk to your employer.

Thanks very much guys. I'll see if my company management will talk to the IR.