Originally Posted by
TheFlyingDoctor
Never even considered the tax angle - seems a strange ruling, as unless you're literally receiving your pay in the form of air miles, surely it's a perk being gifted to you by the airline, not your employer? Fortunately, I'm in the UK.
When something is considered a perk by the tax man, it doesn't matter who gives it to you. You're taxed on the basis of the total sum of all emoluments you receive in the year, regardless of how many income streams you might have.
You're taxed on your total earnings - so for people with income from more than one source, they can't apply a full tax-free allowance to EACH income source, and neither can they apply the full set of tax free allowances to EACH income source. Instead, their total income is calculated, and they are taxed on that one figure.