UK taxman hits Flybe crew as soon as they enter British airspace
Wednesday 14th July 2010, 11:30AM BST.
CI-based Flybe crew face paying UK tax on a third of their pay from this month. (0997823)
GUERNSEY pilots and cabin crew working for Flybe could be forced to pay UK income tax – even though they live in the island and pay tax here.
The airline has told crew that following a ruling by HM Revenue and Customs, deductions would have to be made from the July payroll.
HMRC has insisted that because Flybe is a UK company, with employees spending some of their time working on the mainland, a third of their wages should be subject to UK PAYE.
The ruling also applies to staff in Jersey and the Isle of Man.
But the airline said that it was addressing the situation as a ‘matter of priority’ and was fully committed to ‘supporting its staff in their desire to pay tax where they live’.
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That is ridiculous of course they are non UK tax payers!
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Debbie is right – surely the UK can pass some legislation to deal with cases like this? I know they’re desperate for cash but it’s just ‘plane’ common sense.
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When they are spending 50% of their time in the UK they should have to pay taxes like the saying goes if the cap fits, they would not hesitate to use NHS facilities so where is the problem.
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Flybe – Can you not register your company now in Jersey? Would this not give you tax advantages? Why stay with the UK? Its going to the dogs so get out asap
Alternatively, employ your CI staff from your CI based company/subsiduary as that is what we do in the Finance sector…happy days as if they have to tax you they will then have to tax every airline who staff fly in and fly out
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Actually Jeff they’re not covered by NHS. No Channel Islander is and you will get a bill if you haven’t got isurance. That ship sailed a couple of years ago.
This won’t happen. Flybe’s CI crew spend little time in the UK working and over a technicality such as “British Airspace” is grasping at straws.
I have no idea why Flybe changed from being a Jersey Company to a UK one. Doesn’t make sense to me. It seems to be the fact that it’s a UK company that’s the problem as I don’t think Aurigny are getting pulled up for any missed contributions. I would recommend changing back to a Channel Island based Company or having a third party Channel Island based Company that you recruit your crew through.
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Slightly irrelevant but they need to post an emergency phone number on their website whatever they do!
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Looks like this will fall in to the suspected plans of Flybe and they can now shut down their bases in jer and gci and iom. Now that there is a base in lgw and crew available in sou/bhx/man etc there is no need for remote bases. Come flotation they will be gone i.e. do flybe have bases outside of the UK mainland NO, so tara island bases it was a pleasure while it lasted
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Aurigny dont night stop so they will be exempt!
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angry – what ARE you on about???
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Jeff – I live in Alderney but retain a UK company directorship and pay UK Income Tax and NI on that remuneration. However, as a resident of the CI I am not entitled to any services from the NHS or benefits from the DWP etc… Despite paying into your system I am denied any services from it.
So who is robbing who Jeff?
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@Sign of the times
I think you’re probably right.
@Nathan
It wasn’t regarding overnight stays as even if they are staying overnight they’re technically not working. It was about how much time they spend in British Airspace.
@Angry
Incorrect forum mate, you should contact their customer services department if you’re unhappy with their website.
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This is entirely unfair and morally wrong, The majority of the locally based pilots and cabin crew are local guys and girls who grew up here in Guernsey. They have nothing to do with the UK except to transport mainly Guernsey people there and back 2 to 3 times a day. They very rarely night stop over there and return home practically every night (90% of the time even when its foggy!)
They have families and many have children attending school and would like to see their hard earned money spent locally on things that affect them, Not the UK….
They will have absolutely no benefit from the UK despite this payment except for slightly cheaper university fees for their children (possibly).
This is the thin end of the wedge…This must not be allowed to happen as it will affect all of us…and who knows who could be next in their sights????
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Oh and Sign of the times……
How do you think they could operate a decent reliable red-eye service to the UK if they closed the island bases…Given the airport opening times, crew flight time limitations and fog etc..
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@dashlate
Same as BA do in jer, night stop an aircraft and UK crew for the red eye… far cheaper than runnin a base of crew and engineers!! There is no need for remote bases in the aviation industry now and I suspect Flybe have HAD to retain it due to the Walker families tie in, but, that ‘pressure’ will be gone after flotation as I suspect will be the jet in jer and will only be a frequesnt dash service as they have proven now works out of gci
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@ Dave, I don’t think it is about the amount of time spent in British airspace, it’s the fact Flybe are registered in the UK. That is the difference between the Aurigny and Flybe crews.
If it was to do with the amount of time spent in their airspace they would clobber even more of us with the tax.
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My ex is a hostie, flying for flybe, also a local girl. spends more time over here than me.
I now live in uk. spend days here expect to pay youre way.
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@Nathan,
I seriously doubt that….The C/Crew in Guernsey are so under staffed that they never get to night stop..If she is in the UK a lot that is not for work..Except for 25 minute turn arounds at the airport but she will rarely even set foot in the terminal.
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This won’t stop at just airlines, the uk HMRC will start looking at all industries with uk parent companies and offshore connections to see if he can make some extra money.
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Rather than putting people under fire, have not heard of domestic airlines on overnight stop especially from Guernsey unless grounded, as an ex crew member I would like to point out I have had occassion to use the NHS and not been sent a bill for the use of, if you pay for the right then you have it, you cannot pay for a service through PAYE then expect private treatment, on another note airline crew do have other schedules apart from the same run every day, if they chose to buy a second property on the Mainland then surely that should warrant paying tax, surely this goes deeper than the assumptions in these letters.
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InStPeters
I completely agree with you…we have to nip this in the bud ASAP otherwise look out all!!!
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@ Sign of the times.
With your exquisite knowledge of airline operations you are obviously the man to turn Aurigny into a profit making airline?! Maybe start by charging for drinks, stop giving out papers, and a charge for checking a bag in, like nearly every other major airline! Why are there so many pig headed islanders with attitudes like yours towards Flybe?! This forum is about the unfair UK taxing of LOCAL Flybe crew who don’t even pass through customs on their daily flights to the UK.
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just wait for it they will prob try it with the boats next id feel for the crew of the clipper and Goodwill there not that fast so spend longer in englands waters .
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LOL the UK is a hypocritical violent place.
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