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Is a flight duty allowance for pilots taxable

Most airlines will pay some sort of flight duty allowance to pilots but is it taxable?

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A pilot receives a set rate of additional pay depending on the location he flys to and is paid this automatically. It's referred to as "sector pay" otherwise kown as "flight duty allowance". The payment isn't being payrolled and is paid direct to his bank account so presumably its allowable.

However, I have read about "Sector pay/flight duty allowances" being partially taxable? The "partially" bit is making me a bit nervous about claiming the full expense. I have read that the rates are appoved by HMRC up to certain limits, but unsure how I find this out?

Any comments would be appreciated.

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By Accountant A
10th Jan 2019 12:47

Where did you 'read about "Sector pay/flight duty allowances" being partially taxable'? Have you got a link?

Without details, you can't draw a conclusion for your client. What are these "business related expense[s]"?

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By Tim Vane
10th Jan 2019 13:30

All the rules and benchmark rates are covered in the employment income manual. Have a read.

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Replying to Tim Vane:
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By Alex999
10th Jan 2019 16:04

Yes presumably you mean this:

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim302...

This is the per deim rate of £5, £10 or £25 depending on the numbers of hours involved.

Employers can agree rates on bespoke terms if they agree this with HMRC, but it's an Irish company (Aer Lingus) so I expect they haven't.

I guess I need to know more about his journeys, I expect his employer should know this, but it seems like a lot of work.

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