In 1996/97 the Inland Revenue agreed with a particular airline
that its pilots and co-pilots should receive a FRE of £500 per
year for five years, beginning in 1997/98. The last year covered by
that agreement was 2001/02 but the FRE continued to be applied for
subsequent years. Negotiations to renew the agreement did not begin
until 2004/05. Those negotiations were still ongoing in January
2006 when the new, industry wide FRE was agreed.
In accordance with the agreement with BALPA, and
EIM50057, the HMRC office conducting
those negotiations may now agree deductions for 2004/05 and 2005/06
based on the following amounts:
| 2005/06 | Basic FRE £800 plus travelling expenses £100 |
| 2004/05 | Basic FRE £780 plus travelling expenses £100 |
The additional relief due as a result of this agreement may be
given as a composite coding adjustment in 2006/07.
Note that no further relief should be agreed for the years
when, though the original agreement had expired, no active
negotiations were in progress.
Note also that if the employer makes a contribution towards
the employees' expenses, or provides significant items of
equipment, the basic FRE should be reduced accordingly (see
EIM32736 and
EIM50059).
