Flight pay
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Flight pay
I guys, as many of you, I often visit www.ppjn.com to check who is recruiting etc etc...
I say sorry for my ignorance, but I don't really understand how the payscale works.
Let's take an example with Aer Arran:
first officer base payscale is €30000 per year, then you have a flight pay of €12 per sector.
Do you add those money together to see how much you actually bring home?
Do you pay taxes on both payscale and sector pay?
Thank you very much.
I say sorry for my ignorance, but I don't really understand how the payscale works.
Let's take an example with Aer Arran:
first officer base payscale is €30000 per year, then you have a flight pay of €12 per sector.
Do you add those money together to see how much you actually bring home?
Do you pay taxes on both payscale and sector pay?
Thank you very much.
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Not sure exactly how it works at Arran, but normally you pay a reduced tax rate on your duty pay.
For example at my last company we were paid an hourly rate and were only taxed on 20% of it. It makes a very nice addition at the end of the month!
For example at my last company we were paid an hourly rate and were only taxed on 20% of it. It makes a very nice addition at the end of the month!
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Flight pay is separate. Your basic is gauranteed regardless of whether you sit at home all year and not fly a single hour. Sector pay is then added to to your basic each month. For example you may have done 55 sectors in a month and as for example Aer Arann at 12 euros per sector it comes to an extra 660 euros for that month which is then added to your basic. In some airlines you also get paid duty hour money. This means that for every hour that you are at work you get paid a certain amount. This is also added to your basic each month. And finally some airlines offer allowances for meals, nightstops, training days etc.
In some airlines sector pay is taxed, but usually it is given as an allowance. The extra payments can add an extra 1000 euros or more to your pay each month.
Hope this help your query.
In some airlines sector pay is taxed, but usually it is given as an allowance. The extra payments can add an extra 1000 euros or more to your pay each month.
Hope this help your query.
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It rather depends on whether the sector pay is intended as a subsistence allowance or not - and whether the carrier is international or domestic. If the sector pay is intended as a productivity-related element of salary, it will be taxed in full. If it is intended to offeset costs incurred when away from home, it may be subject to reduced levels of taxation, if it was so negotiated between the company and the Revenue.
In my company we are paid an element of salary which is dependent on flying hours, and which is taxed (and is pensionable) at the full rate. We are also paid allowances at a rate specific to each destination. As all our destinations are outside the EU, there is no tax whatsoever on these allowances - as agreed with the Revenue.
Scroggs
In my company we are paid an element of salary which is dependent on flying hours, and which is taxed (and is pensionable) at the full rate. We are also paid allowances at a rate specific to each destination. As all our destinations are outside the EU, there is no tax whatsoever on these allowances - as agreed with the Revenue.
Scroggs
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When it comes to taxation and duty pay then it all depends on which Inland Revenue office the airline deals with. Most airlines seem to have flight/duty pay taxed to some degree. My company however has tax free duty pay. Depends on which IR offfice you deal with.
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And we could go into the issue of how almost every professional who spends significant working time outside the UK is entitled to a pro-rata reduction in UK taxation, yet the legislation that allows this specifically excludes airline crews - and no-one else! A tactic not used by other EU countries...
Scroggs
Scroggs
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Take Ryan for example, but we can't talk about it, anyway:
Basic salary say 27-45K SFO or Cpt , this is paid monthly and taxed as per normal.
In Addition, for every duty worked there is duty/flight pay of between 70 and 300 pounds depending on number of hours worked. This is paid TAX FREE into any account you want, perfectly legit arrangement, agreed with Revenue etc.
So most folks more than double their wages. Obviously, if one were taxed "per normal" on the duty pay, to bring home an extra £4K per month one would need to earn about £7K before tax.
Most airlines seem to pay a higher basic and lower duty pay , say £2.50 per hr, but it means the tax man gets most of your salary.
Basic salary say 27-45K SFO or Cpt , this is paid monthly and taxed as per normal.
In Addition, for every duty worked there is duty/flight pay of between 70 and 300 pounds depending on number of hours worked. This is paid TAX FREE into any account you want, perfectly legit arrangement, agreed with Revenue etc.
So most folks more than double their wages. Obviously, if one were taxed "per normal" on the duty pay, to bring home an extra £4K per month one would need to earn about £7K before tax.
Most airlines seem to pay a higher basic and lower duty pay , say £2.50 per hr, but it means the tax man gets most of your salary.
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And we could go into the issue of how almost every professional who spends significant working time outside the UK is entitled to a pro-rata reduction in UK taxation, yet the legislation that allows this specifically excludes airline crews - and no-one else!
To correct you Scroggs, the time that has to be outside the UK for a tax reduction is quite a bit more than you might think - and limits the number of visits back to the UK as well, which rules out pretty much all UK-based professionals travelling overseas.
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Re-Heat, yes, that's what the Revenue would like you to believe. In fact, the number of days you must spend out of the country are easily achieved on a normal long-haul roster - bear in mind that days of leaving and arriving in UK count as days away. That said, my point is that the relevant UK legislation applies specifically to commercial aircrew (and the military), wheras other professions resident in UK but plying their trade largely overseas are not so penalised. I am not a financial or tax expert, and I don't have chapter and verse available to me, but the subject is being taken seriously by BALPA, and a legal case is currently under consideration.
Actually, you can live in France, fly a normal roster from Heathrow, and be hugely above the 'days out of the country' requirement. Days in transit through the UK don't count. As I said, many pilots in Virgin do this with the blessing of both the UK and French tax authorities and pay very little tax indeed; typically 20% of income pro-rated to the full days spent in the country of residence, paid to the country of residence. The same rules are applied to French nationals employed in international aviation, so it's not because these guys fall between two stools. Unfortunately, my own family circumstances make it impossible to take advantage of this, more's the pity!
Scroggs
Actually, you can live in France, fly a normal roster from Heathrow, and be hugely above the 'days out of the country' requirement. Days in transit through the UK don't count. As I said, many pilots in Virgin do this with the blessing of both the UK and French tax authorities and pay very little tax indeed; typically 20% of income pro-rated to the full days spent in the country of residence, paid to the country of residence. The same rules are applied to French nationals employed in international aviation, so it's not because these guys fall between two stools. Unfortunately, my own family circumstances make it impossible to take advantage of this, more's the pity!
Scroggs
