British Airways Prevails Against UK Government In £5.78M Tax Dispute For Crew Rest Accommodation

The British government’s HMRC incurred a legal loss this week as the Upper Tribunal’s Tax and Chancery Chamber, has ruled for British Airways in a dispute about £5.78m in income tax and NICs liability for accommodation used by BA flight crews.

In this matter, the first round of the tax dispute was heard at the First Tier Tribunal (FTT) back in February 2025 and marked a win for BA but the decision was sealed for some obscure reason.

In British Airways plc v HMRC, the appeal at the Upper Tribunal focused on the treatment of hotel accommodation provided by British Airways (BA) to cabin crew operating back-to-back (B2B) transatlantic rotations through London Heathrow Airport (LHR) and whether the expense was liable for income tax and National Insurance contributions (NICs).

A great solo travel tip spotted this week on LoyaltyLobby.