Air miles in employee benefits packages could be affected by tax changes

Workers collecting air miles as part of their employee benefits packages will continue to get good value as aviation tax is set to continue in line with inflation.

Fears had been expressed that this week''s emergency Budget would see the cost of air travel increase as the government continues to look for ways to reduce the £156 billion budget deficit.

According to Abta - The Travel Association, Air Passenger Duty (APD) will be left as the previous administration agreed, which was for an inflation-matching rise.

However, those collecting air miles as part of their employee benefits may want to consider using them up over the next year, as the government still has plans to change the tax system for air travel.

It has been suggested that the government is planning on taking the UK away from APD and instead implementing a per plane tax.

Abta spokesperson Frances Tuke said the organisation "broadly agreed" with the move, depending on the level of the tax.

She warned that "taxing people out of the skies" would be bad for the economy as a whole.
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