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  • FIRST POST
    • never_again
    • By never_again 5th Apr 13, 8:52 PM
    • 174Posts
    • 118Thanks
    never_again
    MOD Tax Refunds
    • #1
    • 5th Apr 13, 8:52 PM
    MOD Tax Refunds 5th Apr 13 at 8:52 PM
    Hello,

    I've not posted in this forum before, so hope you can shed some light on this question.

    My husband is in the army and over the last few months a few of his colleages have been dealing with a company called 'Rift'. Rift will organise a claim for a tax rebate on service personnel's behalf (along with other sectors, such as construction, etc) for a whopping 28% + VAT fee!!

    I'veloked into it and like most things have found that we can do it ourselves for the cost of our time and a stamp! I've printed off the form P87 to claim a Tax relief for expenses incurred travelling to location which is not the normal place of work (such as when he's been sent on training courses and has had to use his own transport) for the past 4 tax years. A bit gaulling that it's the 5th April today so we've lost the chance to claim for the 2008-2009 tax year, but never mind.

    However, Rift state that they are able to submit a claim for travel from home to base. This appears to be different to the claim I am submitting with the P87. A colleague of his has included travelling from his married quarter to regular daily base in his claim through Rift:

    http://www.riftuk.com/MOD.aspx

    I have searched the HMRC and 'google' but can't find an information about claiming for normal daily travel?

    Has anyone heard of it?

    Thanks.
    Total Debt November 2016 =£9,660.52

    Monthly Repayments = £593.09

    Goal to be debt free December 2017/ Savings £500
Page 2
    • tocsin
    • By tocsin 26th Jul 16, 3:42 PM
    • 153 Posts
    • 106 Thanks
    tocsin
    The rules are not just for the military, martinbuckley - they apply for all NON-commuting travel, e.g. courses, temporary duty (defined as less than 24 months). Tax relief is legally due on the difference between the HMRC approved rate and the mileage amount the MoD pay.

    The companies may be set up to deal with military personnel, but you can make your own claim (as I do) without their help - DYOR!
    • martinbuckley
    • By martinbuckley 29th Jul 16, 1:20 PM
    • 680 Posts
    • 670 Thanks
    martinbuckley
    I know that, but this company specifically help the Royal Marines claim extra money for ordinary commuting, due to their postings being 2 years or less (on top of their home-duty payments through their salary). The point i'm making, and you seem to have missed, is that why is a RM on a 2yr posting but on a 22yr engagement being treated as a temporary worker for commuting when a civilian who is on a 2yr contract is not.


    I'm quite au fait about claiming mileage for courses and non-commuting travel - I claimed it every year from 2006-2014 whilst in the RAF!
    • Andy L
    • By Andy L 30th Jul 16, 11:06 AM
    • 8,196 Posts
    • 6,394 Thanks
    Andy L
    I know that, but this company specifically help the Royal Marines claim extra money for ordinary commuting, due to their postings being 2 years or less (on top of their home-duty payments through their salary). The point i'm making, and you seem to have missed, is that why is a RM on a 2yr posting but on a 22yr engagement being treated as a temporary worker for commuting when a civilian who is on a 2yr contract is not.
    Originally posted by martinbuckley
    because they are 2 different employment circumstances and the taxman has said <2 year temporary transfer is entitled to tax free transfer allowances. In the same way if the civilian on the 2 year contract was sent to another site for, say, 6 months of that contract they would also be entitled to claim.
    • AlbieKing
    • By AlbieKing 8th Apr 17, 9:10 PM
    • 1 Posts
    • 0 Thanks
    AlbieKing
    The reason the military personnel in this example are able to claim is because their employment is permanent, and they expect to be in the work areas for 24 months or less for HMRC to deem the location as temporary.

    The legislation that is used as a guide by these companies is summed up on the HMRC website under 490 (cannot post a link but it's easy to find).

    There are a lot of factors that would need to be considered, and a work place/area can cease to be claimable for many reasons, it may be that you did not meet all of the criteria to claim at the time.
    • eggha
    • By eggha 9th Apr 17, 3:15 PM
    • 235 Posts
    • 242 Thanks
    eggha
    I know that, but this company specifically help the Royal Marines claim extra money for ordinary commuting, due to their postings being 2 years or less (on top of their home-duty payments through their salary). The point i'm making, and you seem to have missed, is that why is a RM on a 2yr posting but on a 22yr engagement being treated as a temporary worker for commuting when a civilian who is on a 2yr contract is not.


    I'm quite au fait about claiming mileage for courses and non-commuting travel - I claimed it every year from 2006-2014 whilst in the RAF!
    Originally posted by martinbuckley
    as you are still active on the boards and this thread has surfaced again, I will add this:
    • anyone, be they military or non military are covered by the same tax rules regarding travel claims
    • the single key factor is what is the permanent place of employment. It is impossible to be an employee and not have a permanent place of employment as it is either the employer's ;location, or if the contract of employment is so worded, it is the home address of the employee. Military personnel contracts are never based from home, so you will always be subject to the permanent place of employment rule
    • where an employee is sent by the employer to a temporary place of employment they are entitled to claim tax relief on travel costs if the employer has paid them less than the HMRC approved rate.
    • the definition of "temporary" is set in stone: a) from the outset the employee must be expected to be there for less than 24 months, (it is not a test of actual duration, it is a test of expected duration), and b) the employee must actually be there for no more than 24 months doing that role, and c) if they change role the clock starts ticking again.
    • the contract of employment will state a place of employment, it matters not if their contract lasts for 2 or 22 years, it will have a stipulated permanent place of employment. Travel from home to that place is "ordinary commuting" and under no circumstances can tax relief be claimed for such travel. Obviously they can be asked to work at other locations, and it is under those circumstances that "the military" is probably one of the largest groups of employees where the temporary workplace rules can be used to advantage, since "a posting" defines a temporary workplace - but only of the positing is expected to last for 24 months or less can a claim for travel to there be made, otherwise it is simply a new permanent place of employment and is ordinary commuting .

    as I can post links the guide is HMRC's travel expenses manual 490. There are no special rules applied only to the military, the only thing these claims handling companies are doing is taking advantage of the fact that many squaddies are less clued up than civilian employees, and do not have colleagues with wider experience who can set them straight on tax matters. As others have already posted above, you can make the claim yourself having read the rules and avoid the fees, or you can pay the fees and avoid having to think about what you are doing .......your choice:
    https://www.gov.uk/government/publications/490-employee-travel-a-tax-and-nics-guide
    Last edited by eggha; 09-04-2017 at 3:19 PM.
    • ally_n_2000
    • By ally_n_2000 10th Apr 17, 11:26 AM
    • 23 Posts
    • 2 Thanks
    ally_n_2000
    I'm looking to put a claim in for a tax refund and really don't want to use a company, so was wondering if anyone could help me.

    I was posted overseas for 24 months (actual length of post was 23 months) during which time I travelled from my accommodation to my work place daily receiving HDT Automatic.

    As this is deemed a temporary work place, I'm pretty sure I can make a valid claim for the tax value of the difference between the HMRC rates and the rates I received, but wanted to check if that's still the case with the journeys being overseas.

    Also, what proof do you need to provide the HMRC when completing the P87? I have my posting order showing the posting length, I have the HDT on my pay slips. I don't have fuel receipts or anything though.
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