Key facts
- British Airways has won a tax dispute against HMRC regarding accommodation for cabin crew.
- The airline avoided a £5.8 million tax bill for hotel stays near London Heathrow.
- HMRC argued the accommodation was a taxable employment benefit.
- British Airways contended the stays were necessary business expenses for operational reasons.
- The court ruled in favor of British Airways, classifying the accommodation as deductible travel expenses.
British Airways has successfully defended itself against HM Revenue & Customs (HMRC) in a UK court, avoiding a tax bill of approximately £5.8 million ($7.7 million). The dispute centered on whether hotel accommodation provided to cabin crew members working back-to-back shifts near London Heathrow Airport should be treated as a taxable employment benefit or a legitimate business expense.