Is per diem taxable for cabin crew? HMRC rules explained

What is per diem for cabin crew?

Per diem is a daily or hourly subsistence allowance paid to cover meals and incidentals when you are away from your home base on duty. It is separate from your base salary and, in most contracts, separate from any overnight accommodation that the airline arranges. The name comes from Latin - "per day" - though in practice many airlines calculate it per hour away rather than per calendar day.

Per diem is not the same as a living allowance or relocation package. It is specifically tied to being on duty away from base, and it is this duty-linked nature that determines how HMRC treats it.

HMRC approved overseas subsistence rates

HMRC publishes benchmark rates for overseas subsistence - the maximum amounts that can be paid free of income tax and National Insurance when employees are working abroad. For cabin crew, the relevant rates are the overseas benchmark rates, which cover meals and incidental costs outside the UK.

The flat overseas rate is £10 per day and £5 per night. HMRC also publishes country-specific rates that are higher for locations where the cost of living is demonstrably more expensive - these are updated periodically. If your airline pays at or below the benchmark rate for the relevant country, the whole amount is free of tax. If they pay above it, the excess must be reported on your P60 as taxable income.

Your airline does not need to verify that you actually spent the money - these are benchmark rates, not reimbursement schemes. You do not need receipts.

What shows on your payslip: the taxable vs non-taxable split

A correctly processed payslip will show per diem split into at least two elements: the non-taxable portion (up to the HMRC approved rate) and, where applicable, a taxable top-up. Look for codes like PERM, PD, SUBSIST, or OVERSEAS ALLOW - the label varies by airline and payroll system.

The non-taxable element should not appear in your gross taxable pay figure. If your payslip shows the entire per diem as taxable income, that is a payroll error. You are paying income tax on money that HMRC has already approved as non-taxable subsistence - and you are owed a refund of that tax. Check your payslip against your layover count using our payslip explainer to verify the split is correct.

Common per diem mistakes on cabin crew payslips

The whole per diem is taxed. This happens when the payroll system codes per diem as a general allowance rather than an overseas subsistence payment. The fix is to ask payroll to recode it correctly - this can normally be backdated within the same tax year.

Wrong rate applied. If your airline uses a single flat rate for all destinations but you frequently operate to locations with a higher HMRC benchmark rate, you may be under-receiving per diem and over-paying tax. The HMRC published rates by country are publicly available - compare them to your contract rate.

Wrong overnight count. Per diem is calculated from departure to return, not just nights slept away. If your layover included a very short turnaround or a positioning flight that tipped past midnight, it may count as an additional night. An incorrect overnight count will cause both your per diem amount and your tax split to be wrong. See our guide on checking whether you are underpaid for how to audit your overnight count against your roster.

Per diem not paid at all. Some airlines include per diem within a consolidated duty pay rate. If your contract specifies a separate per diem entitlement, you should be able to see it as a distinct line. If it is missing, that is a shortfall to raise with payroll.

Can you claim per diem on your tax return?

If your employer does not pay per diem - or pays it at a rate below the HMRC approved amount - you can claim the difference as a tax deduction on your self-assessment return. The claim covers the HMRC benchmark rate for each night away from base on qualifying duties. You do not need receipts but you do need to show that the duties were genuine work-related travel away from your home base.

Claim using the employment expenses section of your self-assessment or, if you are a PAYE-only employee, via a P87 form. Keep your roster records as evidence of the nights you were away. HMRC can ask for supporting documentation, so do not throw away old rosters.