My client is cabin crew for British Airways
£720 is the FRE for 13/14 for cabin crew for laundry of uniforms.
HMRC on their coding notice to my client for 14/15 and on their tax calculation for 13/14 have included £420 for FRE (but it should be £720 as per EIM 50070) but they have ALSO included on both documents a further £420 for "job expenses" which according to the PAYE coding notice is supposed to cover using her own car for work or hotel and meal expenses (unless my client tells HMRC this has changed)
Not quite sure what I can put on the tax return here. The first £420 is wrong and should be £720. Can we also claim the second £420 although I am not sure specifically how that has been worked out by HMRC
Replies (5)
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I am curious
How cabin crew use their cars for work? Do the cars have wings?
I thought the airline provided the hotel accommodation and a meal allowance. Any excess subsistence over the amount of the airline allowance ought to be claimable under the principle in Nolder v Walters.
In addition you can claim the £720 FRE.
As John says, the £420 included in the PAYE code should be ignored. It is more likely than not meaningless.
I am confused
"HMRC ... on their tax calculation for 13/14 ..." indicates that HMRC have already issued a P800 PAYE tax calculation, so why are you now intending to file a SA tax return? If HMRC have issued a tax return, it is unlikely that they would have also issued a PAYE tax calculation.
However, if you are filing a tax return, you should include the £720 Flat Rate Expense for cabin crew and if there are any other genuine expenses of employment not covered by the FRE, which your client has actually paid (and not been re-imbursed), you can claim for them as well.
Surely your job as their agent is to inform HMRC of the FRE and any additional employment expenses not reimbursed?
Leave the coding to HMRC
Unless HMRC have requested a tax return to be submitted, you could process this on a P87 which I find quicker.