EIM50050 - Airline pilots: industry wide FRE for 2006/07 onwards: introduction

HMRC and the British Airline Pilots' Association (BALPA) have agreed an industry wide Flat Rate Expenses allowance (FRE) which applies to all uniformed commercial pilots and co-pilots (including helicopter pilots), and other uniformed flight deck crew, for 2006/07 onwards. The agreement replaces all locally agreed FREs for the employees concerned. Locally agreed FREs for cabin staff (stewards and stewardesses) are unaffected.

The main features of the agreement are:

• The new FRE applies to all uniformed commercial pilots, co-pilots and other uniformed flight deck crew working in the UK
• It does not apply to cabin staff (stewards and stewardesses)
• The basic FRE is £850, and it applies from 2006/07. For details of what is included, see EIM50052 and EIM50059
• There is a further expenses deduction (EXP) of £100 to cover the allowable cost of travel to certain regular, specified activities (see EIM50060).

For a full summary of what can be allowed under the terms of this agreement, see EIM50051.