Does your airline recognise your "allowances" as salary?
 

Sorry if the title is a bit dodgy.

Basically I'm Cabin Crew and like my flight crew colleagues a large part of my pay is made up in allowances.

I'm not paid depending on destination, but by hourly rate on top on your basic.

The company line is that my hourly rate is for "meals", they do however supply meals for me on every flight as well, depending on the time of day.

The tax man has just decided to tax me on my hourly rate as well, so I guess he sees them as "salary", not meal allowances.

The crux of my story is this...

I've applied, and been successful, in getting another job in my airline, however it would mean at least a £500 drop in take home pay per month.

This is beacuse they only take into account my basic pay and I just slide across onto the nearest pay scale.

Not only is this job seen as a promotion, it would be managing people of my grade. NOT ONLY them but the next grade of management up as well.

My bank manager, mortgage advisor, and every other person in the world take my "allowances" into account when looking at my pay slip for everything else.

My company even do when supplying a letter proving how much I earn (or equivalent of).

Basically I'm wondering if this situation is the same in other airlines as well, or if anyone has any thoughts or simliar experiences on the matter.

I'll be honest...it's hacked me off, as I worked my nuts off to be successful. Only to told that I'll be managing people of which some will be earning up to twice my take home wage.

My union are willing to help back a challenge to this situation, however using their words "No one has ever done it before."

Does anyone know of any new european laws that might help me out with this one.

Oh well. Thanks for you replies in advance


Happy flying all.:ok:

If you are paid an amount per night stop, your allowances are for subsitence down route. As such, they should neither be taxable nor should they be accountable as salary in any way. They are an expenses payment. If you are paid an hourly rate then it can be regarded as a productivity payment, which is taxable and may be regarded as variable salary, though if you are expected to pay for your meals from this then an element of it should be free of tax - and thus can not be regarded as salary.

You - or your union - need to talk to a tax advisor to sort out what your variable payments count as, and whether they should be taxed or can be counted as salary for the purposes of a mortgage or other loan. You might not like what you find out! As for leaving the line to become a manager, it's the same for travelling salesmen and similar jobs all over the place. As your expenses on behalf of the company diminish, so do the payments to cover them.

Scroggs

Actually scroggs, these are typically subject to individual agreement by airlines with HMRC, so there are rarely hard and fast rules about what is and what is not counted as salary.

I suggest you involve a union to negotiate.

Apologies if I have misunderstood, but if you have been including your allowances in your declaration of income on items such as mortgage applications, then I suggest the problem is of your own making, albeit indirectly. The tax man is not stupid and if people go around doing things like that, then sooner or later they're going to catch on.

Per diems are not income and should not be treated as such. My per diems only just cover my expenses, (although I do stop over in one of the most expensive places in the world).