PVR and FRI?

[garybaldi]

Has anybody taken the FRI and then decided to leave the service by PVR? Is it possible and if so what are the implications?

[Hueymeister]

A colleague was told that he would have to pay it back GROSS!!!!! So instead of the 18K, you may find yourself having to fork out the whole 30K.......beware, ask first.

[Oggin Aviator]

A colleague was told that he would have to pay it back GROSS!!!!!
This is true you do pay it back gross, however you can then claim the amount initially paid in tax (ie 12K) back from the tax man at a later date.

[Lionel Lion]

Not according to my local tax office (bottom feeding scum). Their view was that the tax payment was the hold that the RAF has on you for signing. I doubt the MOD would give you a 30K loan repayable when desired.

But you can at least reclaim 66% of your BALPA mil subscriptions as a tax break now (a huge £16)

[garybaldi]

Thankyou for the replies. Do you know of anyone who has actually taken this course of action and if so, how helpful were PMA?

[Titan Locked]

Not exactly PVR'd but did ask the question about the return of service if working out a PVR ie if you have to do 5 years return of service and PVR at the end of year 4 (assuming a 12 month "waiting" period before being allowed to leave) and was told by Innsworth that the "waiting" year still counts towards the required FRI return of service.

Not exactly good news but may ease some of the pain. I agree with Huey - I was told that any payments back would be GROSS. I would be interested to hear of anyone actually convincing the taxman to return his share!

TL

[Hueymeister]

Heard a story last year of some senior WO1's who were mistakenly paid the bonus...and then were told that they had to pay it back.....GROSS, they of course were fighting it, but that was the last I heard..anyone care to elaborate?

[aytoo]

Yes indeed! I was one of them, and in fact left the army over the issue, after over 23 years service. Still, what's one A2 QHI more or less...

The tax angle, though, had been addressed by the authority. When they announced that they were going to claw back FRI 1 & 2 from me, they did explain that as each dollop was reclaimed from me, a tax rebate equal to the tax paid on each dollop would be actioned, so that in effect I would have been repaying only the NET amount, not the GROSS. I most certainly would not have had to fight the taxman for it. So that's all right then...

They have still to actually take anything back from me, however, as the day I resigned I also started 'redress' proceedings. these are still dragging on today, over a year and a half later - despite the 'guideline' times for redresses to be dealt with up to the level of the army board of the defence council within 6 months! That in itself is not a surprise, as another, unrelated, matter is still unresolved by redress over six years after submission.

But like the Murphys, I'm not bitter. Not f@*^%$&* much!

[garybaldi]

Thanks for the reply aytoo.

Not having to pay the gross amount back will easier on the finances