Another reason why being a pilot is a great job… tax relief.
But are you missing out on your substantial tax rebate?
Co-pilots and pilots of helicopters and aeroplanes are all entitled to reclaim UK tax on an assortment of work expenses. There are two main ways to make sure that you don’t miss out on your Pilots’ Tax Relief.
Flat Rate Expense Allowances (FREA)
The best bit about this type of claim is that you do not need to produce any evidence to back it up. No receipts, travel logs or records of course attendance required. As a pilot, you are entitled to £1,022 tax relief per year as a Flat Rate Expense Allowance. This is to cover the unavoidable costs you incur just going to work, including: uniform laundering, CRP5s and other items that are fully listed in our Pilot’s Tax Relief Guide.
You can also claim £110 for Travel Expenses to specifically identified training courses and medical exams. This is a separate FREA and you can claim both at the same time.
Once you have made your first FREA claim, you tax code will be changed so that the same amounts are incorporated in subsequent years – with no additional paperwork requirement.
Full cost of work expenses tax relief claim
If you know that you’ve spent considerably more than the FREA set amounts, then you are perfectly entitled to claim tax relief on the actual costs you have incurred. The catch here is that you will need supporting evidence. HMRC have different requirements for different work expenses, so this can become quite fiddly. Lots of taxpayers choose to seek expert help with these sorts of claims to make sure that they receive their full entitlement while still remaining totally tax compliant.
As a pilot, what other expenses can I claim for?
Pilots can claim for the same work expenses as all other taxpayers, including:
- Accommodation and subsistence costs if you are asked to work at a temporary location.
- Replacement of uniform items.
- Membership costs of belonging to your Trade Union or other professional body. Both BALPA and IPA members are entitled to tax relief on a high percentage of their fees.
This is by no means an exhaustive list and, if we are tasked with putting together your claim, we will make sure you are receiving all your legitimate tax reliefs. HMRC deals with each claim on an individual basis and things vary between taxpayers’ different financial situations. Our bespoke service underlines our holistic approach that maximises the tax position of all our clients.
In a similar way other cabin crew can reclaim tax relief on their work related costs.
Claiming your Pilot tax rebate
Many pilots have to complete a self assessment tax return each year for a variety of reasons (like being classed as a UK non resident or because they have rental income). Any allowable work expenses have to be included in your tax return or you will not be given the tax relief you are due.
If you don’t complete a self assessment tax return you can claim for your expenses through the completion of a P87 form online or by post.
To find out more about Pilots’ Tax Relief, including all your allowable costs and what to do if you don’t live in the UK, read through our Pilots’ Tax Relief Guide.
