The Fin
11th Jul 2006, 07:48
I know that for many people this will be old hat but I recently discovered some facts regarding what the Inland Revenue calls ‘temporary assignments’ that could have significant financial benefit to most who serve in the Armed Forces. Essentially, if you are sent on any work that is scheduled to last for less than 2 years, the IR classes it as a ‘temporary assignment’. This is really important as it opens the door to claims for driving from your home to place of work – this type of claim is not permitted for a ‘permanent’ assignment. So, if you are on a course for a week, or even a longer version taking several months, you are permitted to claim 40p per mile for each journey you make between your home and your ‘temporary’ workplace. This stands even, if like me, you actually move house to attend a long course. You must however, take off any allowances you receive, such as GYH(D) or anything else that is directly intended to assist the cost of getting you home, but if the MOD pay you at less than 40p per mile, you can of course claim the difference. So far, pretty standard, and a lot of people will have already claimed. However, if your employer sends you away on ‘temporary’ business (<2yrs), you are also entitled to tax relief (so 40% for most) on the cost of hotels and meals not covered by your employer. This means that if you choose to stay in a hotel not the mess, you will only pay 60% of what it costs. Likewise, if you go out to eat, you can claim back 40% of the cost of the meal (actually, you could claim back 40% of the cost of the meal in the mess, but it’s hardly worth it!). Also, if you spend more than your JPA allowance, as long as it is not ‘outrageous’, you can claim 40% of that figure too. In the same vein, if your employer buys you a ticket to travel and you decide to upgrade that ticket, you can claim back 40% of that cost too, the IR specifically mention this one! The full details of what you can and can’t claim are contained in IR Leaflet 490, www.hmrc.gov.uk/helpsheets/490.pdf – it’s well worth a study as I was able to claim back several thousand pounds as a result of my last 2 tours being classed as ‘temporary’. You fill in details for the current tax year in your self assessment and the computer automatically pays, usually within 10 days. For back claims up to 3 years, you have to claim separately. I used a tax advisor who was slick and not very expensive (<£150) to do that part. There’s plenty more – membership of BALPA, GAPAN etc are all tax deductible, but I recommend reading the leaflet then following up on here. This will liberate lots of money for those on a series of courses, eg flying training, or anyone who works away during the week! I should mention that I am most certainly not a tax advisor and am just trying to pass on some useful information that I discovered, so you should do your own research and take this in the spirit it is intended!