The Treasury has issued an update on tax changes affecting UK air travel, following a petition signed by over 11,000 people. The petition called for a review of the scale rate expenses paid to employees who travel abroad, such as airline cabin crew, arguing the current system is 'completely unfair'.
Scale rate payments allow businesses to provide employees with a set amount of cash to cover expenses like travel and meals without requiring receipts. The petition claimed the rates are not reflective of real costs and that the time-block system—based on 5, 10, or 24-hour periods—penalises workers when flights are delayed.
In its response, HMRC stated that the Government keeps all taxes under review and that any future changes will be considered in the context of public finances. It defended the current system as a 'consistent, evidence based framework' for tax-free subsistence payments, but noted employers can agree bespoke rates with HMRC if standard rates are not appropriate.
The petition, which garnered over 10,000 signatures, triggered a mandatory government response. The Treasury emphasised that employers are not required to use the published scale rates and can reimburse actual costs with receipts, offering flexibility for sector-specific issues like flight disruptions.
