Paying tax whilst detached

Snunn1

Hello everyone,

I, like alot of service personnel, have spent alot of time in this financial year out of the UK, namely in Afghanistan. Am I able to reclaim my tax for the time that I'm away or are we exempt for some reason? Also, is there any way of reclaiming the tax and/or NI on my commitment bonus?

Regards

Andy_L

Theres no special exemption designed to shaft service personal, you just don't meet the requirements to not pay UK tax, in particular (and drastically simplifying):

You work for a UK employer
You intend (touch wood) to return to the UK & your home is in the UK
The money will enter the UK

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/LeavingOrComingIntoTheUK/DG_10026136

martinbuckley

and of course you'll have received your Operational Bonus which will more than cover your Tax bill for the period you were in Afghanistan.

herewegoagain2010

It's a shame that our government doesn't support our forces the same way as the American's do. They make sure their troops are tax-free on ops. Even if you're posted overseas and live outside the UK for over the 6month requirement you can't claim your tax back. It's a shame, but we can't knock the 25% rebate on the payment in lieu of council tax!

Snunn1

Thanks to everyone who replied to my post and answered my question, it makes sense now, I was just curious as to how the tax rules worked whilst we're away.

Thanks

Andy_L

herewegoagain2010 wrote: »

It's a shame that our government doesn't support our forces the same way as the American's do. They make sure their troops are tax-free on ops. Even if you're posted overseas and live outside the UK for over the 6month requirement you can't claim your tax back. It's a shame, but we can't knock the 25% rebate on the payment in lieu of council tax!

Its swings & roundabouts though. Yes they are tax free on ops & have good fringe benefits but they do 12 month tours &, when not on ops their salary is very low & the pension not as good.

ISTR a report saying that ideally you wanted Australian salary, UK pension, US benefits & Dutch TACOS.

You should be getting the council tax rebate - either from the council or, if they won't play ball then a flat rate from the MoD

Trying_to_be_good

Op allowance was originally set at a rate equivalent to the tax and national insurance paid by a Lance Corporal (I can't remember what increment), to be similar to other country'd whose service personnel didn't pay tax on Ops. Then the coalition government doubled it, so you should be OK moneywise (not suggesting this us good or bad compensation for being away, though).

Veryskint

Andy_L wrote: »

You should be getting the council tax rebate - either from the council or, if they won't play ball then a flat rate from the MoD

Its the MOD that are required to pay this, not the council.

Trying_to_be_good

Veryskint wrote: »

Its the MOD that are required to pay this, not the council.

MOD pay if the Council won't - for some (in expensive areas) the Council discount would be bigger than the MOD flat rate relief, so it's worth working out the sums and asking the Council if they'll give the discount if that's a larger sum.

Muhasib

The latest situation regarding Council Tax Relief is that the Unit Admin Office will request that the Serviceperson apply to their council on return from Operational Service and only after the Council respond in writing that they won't apply any discount will the MOD then make a payment.

This is apparently so that the relief can't be paid by both the local council and the MOD to the service person.

CIS

The latest situation regarding Council Tax Relief is that the Unit Admin Office will request that the Serviceperson apply to their council on return from Operational Service and only after the Council respond in writing that they won't apply any discount will the MOD then make a payment.

They shouldn't require this as its a waste of time- there is no discount that the council can award as the single person discount doesn't apply.