Simon and Laura take a deeper look at tax for pilots and aircrew and international workers

If you fly for a living, as a pilot, first officer, or cabin crew, you spend your life crossing borders. Tax rules don’t always keep up. This guide distils our podcast discussion into a clear flight plan so you pay the right tax in the right place and you get clarity and confidence about your position.

1) Why pilots and aircrew are different

UK tax residence normally hinges on the Statutory Residence Test (SRT). But for international transportation workers (that’s HMRC’s umbrella term covering pilots and cabin crew whose work is substantially cross‑border with six or more journeys starting or ending in the UK), two major SRT shortcuts don’t apply:

• Automatic Overseas Test 3 (full‑time work abroad) – disapplies for relevant aircrew.
• Automatic UK Test 3 (full‑time work in the UK) – also disapplies.

Result: you rarely get an automatic answer. Most pilots end up needing the Sufficient Ties Test.

2) The Sufficient Ties Test - what typically trips people up

When those automatic tests fall away, residence often turns on:

• Family tie (partner/minor children in the UK)
• Accommodation tie (a place available to stay in the UK)
• Work tie (40+ UK workdays)
• 90‑day tie (90+ UK days in either of the two preceding tax years)
• Country tie (if you were UK‑resident in any of the prior three years)

Two important sub‑rules for aircrew:

a) Deemed Days

Normally you count a UK day if you’re here at midnight. But if you were UK‑resident in any of the previous three tax years and you have at least three UK ties, then arrivals and departures can start to count as deemed days. The first 30 deemed days are ignored; after that, they add to your day count. For crew regularly touching the UK, this often tips the balance to UK residence if ties aren’t managed.

b) Transit Days

Passing through the UK can be ignored only if you remain in transit and do no work. If you overnight to position for a duty or perform any work element, it’s not a transit day.

3) Split‑year treatment - why it’s harder for aircrew

Many movers rely on the SRT’s split‑year cases. For pilots and cabin crew the common routes are often blocked:

• Case 1/3 (start full‑time work overseas / cease UK residence mid‑year) are generally unavailable because the 'full‑time work' tests don’t apply to relevant aircrew once the cross‑border threshold is met.
• Case 2 (partner starts full‑time work overseas) can help only if your partner’s role meets that definition—and often couples work in the same industry, so this may not fit.

Implication: breaking UK residence usually requires relinquishing a UK home, minimising UK ties, and tightly controlling UK day counts.

4) What counts as a UK workday for aircrew?

For SRT work‑tie purposes, if a duty starts or ends in the UK, it’s typically a UK workday. For salary taxation, the practical treatment is:

• Domestic sectors (UK–UK): fully UK‑taxable.
• International sectors: if you’re UK tax‑resident, any flight starting or ending in the UK is within UK charge (treaty relief may adjust. See below).
• If you’re UK tax non‑resident, sectors starting and ending outside the UK are generally outside UK tax. Ground duties/training physically performed in the UK remain within scope.

Most airlines can supply a UK/Non‑UK duty analysis to support correct payroll and returns.

5) Double Tax Treaties - similar idea, different answers

Even if the SRT makes you UK‑resident, a double tax treaty (DTT) can allocate taxing rights differently. Most treaties include a special 'international transport' article for aircrew, but they vary:

• 'Place of effective management / airline residence' model (e.g., Spain): income from employment on aircraft operated by an enterprise resident in a state may be taxable in that state. If you work for a UK‑resident airline, the UK often keeps taxing rights even if you live abroad.
• 'Residence of the individual' model (e.g., UAE): taxing rights align more with your treaty residence, but duties physically performed in the UK can remain taxable here.

Don’t assume all treaties say the same thing. The wording matters. Get the exact text checked before you move, so your payroll and estimates match reality.

6) Payroll mechanics: Section 690 directions & NT codes

If you become UK tax non‑resident but keep a UK‑based employer, consider a PAYE Section 690 direction so tax is withheld only on the UK‑taxable percentage of duties. You’ll still file a UK Self Assessment to reconcile.

Watch‑outs:

• If you misjudge residence and end up UK‑resident, any under‑withheld UK tax becomes due at year‑end.
• If you’re paying tax overseas (e.g., Spain, where returns are due mid‑year), you may need cash earlier than a UK refund arrives.

7) Typical scenarios we see

1. BA‑based pilot relocates to Spain
   Gives up the UK home, base shifts to Spain, continues flying UK sectors. The SRT becomes a ties/day‑count exercise; Spanish treaty wording may still give the UK taxing rights for airline employment because the employer is UK‑resident. Expect UK withholding on UK‑chargeable portions and Spanish filing on worldwide income with credit relief as applicable.
2. Aircrew moves to UAE, remains on UK contract
   Becomes treaty‑resident in the UAE. Many duties starting/ending in the UK remain UK‑taxable; other sectors may fall to the UAE under the treaty. A Section 690 can keep PAYE aligned with the UK‑taxable percentage.
3. Non‑resident captain commuting for UK training blocks
   All UK‑based ground days are taxable here; non‑UK sectors remain outside scope. Airline reporting usually splits this cleanly.

8) Your pre‑flight checklist (action plan)

• Map your year: roster pattern, expected UK overnights, and sector mix (UK‑UK, UK‑overseas, non‑UK‑non‑UK).
• Audit your ties: family, accommodation, prior‑year days, and country tie risk.
• Track actuals: keep day logs noting midnights, arrivals/departures, and any work performed on “transit” days.
• Get treaty‑specific advice: Spain ≠ UAE ≠ Ireland. Read the actual article.
• Speak to payroll early: arrange Section 690/appropriate coding; confirm airline duty reports available.
• Coordinate overseas filings: align timings and cash flow if the other country’s tax is due before UK refunds are processed.

9) FAQs

Q: Can I rely on split‑year treatment when I move mid‑year?
A: Often no for aircrew, because the full‑time work tests don’t apply once you meet the international transport conditions. You’ll likely need to fully break UK ties and manage days instead.

Q: Do arrival/departure days count?
A: If you have 3+ ties and were UK‑resident in the prior three years, deeming can add post‑30 arrival/departure days. Plan for this.

Q: If I’m non‑resident, are all flights tax‑free in the UK?
A: No. UK‑UK sectors and UK‑based ground duties stay within UK scope.

Q: My partner starts full‑time work overseas. Does that save me?
A: Possibly under Case 2, but only if the partner genuinely meets the full‑time work test and your facts fit.

With aircrew, the rules look familiar but behave differently. Get the residence and treaty piece right, set payroll correctly, and keep tight records. Do that and you’ll pay the right tax in the right place and you’ll get clarity and confidence all year.

Speak to LSR Partners

You get a specialist expat/aircrew team that’s responsive, precise, and practical. Share your roster pattern and intended move country, and you’ll get a tailored plan covering SRT, treaty position, PAYE setup and overseas filing timelines.

This post is general guidance, not personal tax advice. Always take advice on your specific facts.

Contact LSR Partners today to speak with our expert team and pay the right tax, in the right place, at the right time.