Military Personnel - An Easy Inland Revenue Target? A new conspiracy theory!
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will have details of all your past claims
..............and don't forget that The RAF pays you 22 odd pence a mile for using your own car. The Tax man would allow you 43p per mile before taxing you on profit. The difference is a net loss to you and is tax-deductable.
So, if you are a high rate tax payer then thats 40% of that difference( around 21p per mile) that you get back. SHQ will have details of all your past claims and the Tax man will allow you to reclaim 6 years worth.
The above is fact. I've also heard that things like haircuts, mess standing charges and even shoe polish are deductable - but that's just rumour!!
So, if you are a high rate tax payer then thats 40% of that difference( around 21p per mile) that you get back. SHQ will have details of all your past claims and the Tax man will allow you to reclaim 6 years worth.
The above is fact. I've also heard that things like haircuts, mess standing charges and even shoe polish are deductable - but that's just rumour!!
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Vague Rot
I've also heard that things like haircuts, mess standing charges and even shoe polish are deductable - but that's just rumour!!
Alba Gu Brath
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Shoe polish (and accoutrements), hair cuts & shaving kit (military for the use of) are all tax deductable as they are considered an essential part of your job. Ask any Bluntie in SHQ, they probably all claim so will know the hows and whys.
However, since the amount you will be claiming back runs into pennies at the most (unless yer polishing yer boots every night) then a quick time & motion study will probably prove it a worthless exercise.
However, since the amount you will be claiming back runs into pennies at the most (unless yer polishing yer boots every night) then a quick time & motion study will probably prove it a worthless exercise.
will probably prove it a worthless exercise
Say 1 x Haircut per month @ £15-00 over ten years (for example) = Total of £1,800-00. Higher Rate Tax payer @ 40p in the pound.
Tax Refund due = £720-00.
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I tried the mess charges bit with the IR but it was no dice. I do not have to be a member of the mess to be an officer/SNCO. [True. QRs state that you ARE members, not that you HAVE to be members.]
Don't forget professional institutes. If you are a member of the IEE, CIPD or CMI, for example, you can claim the annual fees against tax.
Don't forget professional institutes. If you are a member of the IEE, CIPD or CMI, for example, you can claim the annual fees against tax.
Join Date: Nov 2000
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Sorry to hear you guy's are getting these demands.
Not a uk tax expert but in a number of jurisdictions I have dealings with if your employer cocks up the equivalent of PAYE it is THEIR problem to resolve, they pay the tax and then can ask for it back. Almost unenforceable as they were negligent.
Maybe it is worth checking with a uk tax expert, some do free short consultations to see if it is worthwhile getting them to do things for you.
Good luck guys
Come to think of it as a beancounter (for my sins) if there are a load of you guys getting these demands I could contact one of my firms UK tax guys in the UK and ask if they can help.
They could then do you a group rate for dealing with it at miniml cost each! mail me if you are interested.
Not a uk tax expert but in a number of jurisdictions I have dealings with if your employer cocks up the equivalent of PAYE it is THEIR problem to resolve, they pay the tax and then can ask for it back. Almost unenforceable as they were negligent.
Maybe it is worth checking with a uk tax expert, some do free short consultations to see if it is worthwhile getting them to do things for you.
Good luck guys
Come to think of it as a beancounter (for my sins) if there are a load of you guys getting these demands I could contact one of my firms UK tax guys in the UK and ask if they can help.
They could then do you a group rate for dealing with it at miniml cost each! mail me if you are interested.
If you are in the Salisbury area and want you tax return doing for you properly, I can reccommend a chap. In short, I pay him 50 quid and as long as he gets me a rebate of 55 quid or more, I consider it money well spent. He takes into consideration the wee funnies like mess subs (professional organisation), three line whip dinners (professional entertainment), MMA @ PCR and the like. IR are never on my back and an extremely complicated tax problem (they taxed me on my link-up and then stopped taxing me alltogether!) was smoothed out after 22 months because of him. PM me for details.
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I also received a tax return last year, demanding payment of just shy of £1000. I think it was triggered by a small FRI paid in 2001, which was taxed at 40%. I could not understand why I had to pay such a large sum ( not offered, or aware of, the payment through tax code until too late) and went through 4 different tax people at the tax office to get them to explain to me why I had such a large bill. Not one answer and in one case did not even bother to call me back with the answer after promising to do so. The end result was a demand for the payment the following day!
Could not pay immediately so informed them accordingly and paid a month later, out of long term savings. Then received another bill for interest for the month. T****.
Weeks later, received another tax bill for 2002 for a similar amount. Same story again as to lack of explanation from the tax office, but this time pound of flesh taken through tax code.
Went to see an accountant who very quickly pointed out that the tax people were unaware of my yearly increased earnings, and were taxing me at too low a rate; hence the tax bills. ( and he didn't charge me!!)
He said that there are 2 offices, one does pay and one does coding or suchlike, and the 2 are operating at about 2 years apart. So to anyone who has had one of those grat issues of sterling from the MOD; stand by for a large bill in 2 years time.
Todays top tip is; when you get a payrise fill in a tax return.
Could not pay immediately so informed them accordingly and paid a month later, out of long term savings. Then received another bill for interest for the month. T****.
Weeks later, received another tax bill for 2002 for a similar amount. Same story again as to lack of explanation from the tax office, but this time pound of flesh taken through tax code.
Went to see an accountant who very quickly pointed out that the tax people were unaware of my yearly increased earnings, and were taxing me at too low a rate; hence the tax bills. ( and he didn't charge me!!)
He said that there are 2 offices, one does pay and one does coding or suchlike, and the 2 are operating at about 2 years apart. So to anyone who has had one of those grat issues of sterling from the MOD; stand by for a large bill in 2 years time.
Todays top tip is; when you get a payrise fill in a tax return.
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Do you chaps realise that you are all eligable for a rebate on your claims for duty journies? And that this rebate is payable retrospectively for 5 years.
In short, every time you do a duty journey and put a claim in, you only get a portion of what you are entitled to as your claim is taxed!!
Go to admin and ask for a print out of all you duty journies for the past 5 years. Go to your local tax office and get a tax rebate form. Marry the 2 up, and in a few months, your average serviceman could have a cheque worth at least a good evening out with the Memsahib or maybe even a dirty weekend away with a loved one. The only (bizarre) exception is that journies made on posting are not eligable for this rebate.
I only found this out after getting a tip-off and then beating my accts clerk to death until she finally admitted to it.
Go to your accts flt - demand back what is rightfully yours! As a few other posts on this thread have suggested, anything work related, you can claim the tax back on it. This even extends to det t-shirts - Terrane offered me a VAT rebate if I could get them a VAT exemption form when I put the det's order in - unfortunately I forgot to pack it on my way to the sand pit.
There are lots of rebates/exemptions, it's just about asking the right person the right question.
In short, every time you do a duty journey and put a claim in, you only get a portion of what you are entitled to as your claim is taxed!!
Go to admin and ask for a print out of all you duty journies for the past 5 years. Go to your local tax office and get a tax rebate form. Marry the 2 up, and in a few months, your average serviceman could have a cheque worth at least a good evening out with the Memsahib or maybe even a dirty weekend away with a loved one. The only (bizarre) exception is that journies made on posting are not eligable for this rebate.
I only found this out after getting a tip-off and then beating my accts clerk to death until she finally admitted to it.
Go to your accts flt - demand back what is rightfully yours! As a few other posts on this thread have suggested, anything work related, you can claim the tax back on it. This even extends to det t-shirts - Terrane offered me a VAT rebate if I could get them a VAT exemption form when I put the det's order in - unfortunately I forgot to pack it on my way to the sand pit.
There are lots of rebates/exemptions, it's just about asking the right person the right question.
Join Date: Dec 2002
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Anyone had any dealings with regards to tax/pensions in other countries i.e done your time, left at 16/38 point and moved elsewhere.
Particularly interested in how it works moving to Canada . . .
Particularly interested in how it works moving to Canada . . .
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FFP
HMG reserve the right to tax "Government Pensions" in the UK. If you emigrate after retirement then your Pension will still be paid net of UK tax. The definition of a "Government Pension" is fairly broad and includes people like Teachers and Nurses.
If you emigrate to a Country that has a "Dual Taxation Treaty" with the UK then it can work to your advantage. Your pension will be taxed in UK taking into account the appropriate UK tax allowances. Your country of residence will not tax you on your pension but will tax you on any other income after taking into account any appropriate tax allowances in that country.
If you emigrate to a country that does not have a treaty with UK then you will be liable to be taxed on your pension in UK AND your country of residence.
Sadly, I do not believe there is a Dual Taxation Treaty between UK and Canada.
HMG reserve the right to tax "Government Pensions" in the UK. If you emigrate after retirement then your Pension will still be paid net of UK tax. The definition of a "Government Pension" is fairly broad and includes people like Teachers and Nurses.
If you emigrate to a Country that has a "Dual Taxation Treaty" with the UK then it can work to your advantage. Your pension will be taxed in UK taking into account the appropriate UK tax allowances. Your country of residence will not tax you on your pension but will tax you on any other income after taking into account any appropriate tax allowances in that country.
If you emigrate to a country that does not have a treaty with UK then you will be liable to be taxed on your pension in UK AND your country of residence.
Sadly, I do not believe there is a Dual Taxation Treaty between UK and Canada.
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Aha! Another soul packing for Canada. 
I had a chat with a couple of Canadian accountants on this very issue; there is an agreement. The pension will be taxed in UK, but as it will be the only income, it will be at the lower rate. It will not be taxed in Canada and what's more, as taxed oversees earnings, current regulations mean that the Canadian's will ignore that net income as part of your total income for their tax purposes.
Watch out however for the gotcha concerning the index linking of you pension, as this does not apply until your 65th birthday if you emigrate to a commonwealth country...
I had a chat with a couple of Canadian accountants on this very issue; there is an agreement. The pension will be taxed in UK, but as it will be the only income, it will be at the lower rate. It will not be taxed in Canada and what's more, as taxed oversees earnings, current regulations mean that the Canadian's will ignore that net income as part of your total income for their tax purposes.Watch out however for the gotcha concerning the index linking of you pension, as this does not apply until your 65th birthday if you emigrate to a commonwealth country...
Join Date: May 2002
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Back to the original discussion point.
In March 1992 I arrived home to find a very large envelope with H M INSPECTOR OF TAXES written all over it. Somewhat bemused (it was, after all, far too early for a Tax return to arrive) I sat down and opened it. I was grateful for my foresight in sitting down as it turned out to be a Bill for (if I remember correctly) £57820.
I rang the telephone number provided to protest and was told that I would have to appeal in writing. This I did and received a reply suggesting that I pay £30,000 "on account" while we haggled.
I REFUSED!!!
The upshot was that they did a full investigation of my finances since I was 18 years old (I had taken a pay cut from the £1 a day I was paid in Civilian life to join the RAF) and sent me a cheque for £74 overpaid tax!!! (NO INTEREST)!!!!
I was later told by a civilian friend who worked as a Financial Advisor that the IR select a few thousand people each year and send them a bill. If it is paid then they are taken to the cleaners because they will probably owe a great deal more. I had nothing to hide so it didn't cause me any problems other than a few sleepless nights.
BUT WHAT IF I HAD BEEN 30 YEARS OLDER?
In March 1992 I arrived home to find a very large envelope with H M INSPECTOR OF TAXES written all over it. Somewhat bemused (it was, after all, far too early for a Tax return to arrive) I sat down and opened it. I was grateful for my foresight in sitting down as it turned out to be a Bill for (if I remember correctly) £57820.
I rang the telephone number provided to protest and was told that I would have to appeal in writing. This I did and received a reply suggesting that I pay £30,000 "on account" while we haggled.
I REFUSED!!!
The upshot was that they did a full investigation of my finances since I was 18 years old (I had taken a pay cut from the £1 a day I was paid in Civilian life to join the RAF) and sent me a cheque for £74 overpaid tax!!! (NO INTEREST)!!!!
I was later told by a civilian friend who worked as a Financial Advisor that the IR select a few thousand people each year and send them a bill. If it is paid then they are taken to the cleaners because they will probably owe a great deal more. I had nothing to hide so it didn't cause me any problems other than a few sleepless nights.
BUT WHAT IF I HAD BEEN 30 YEARS OLDER?
Last edited by kilo52; 1st May 2004 at 20:36.
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I had a nasty experience with the Dutch tax people. When we moved there, we took everything to the Tax office and asked if it was OK and was there any tax to pay in Holland. We were assured there was no income tax, so we left happy.
12 months later, we received a tax return, we thought nothing of it, filled it in, sent it back and the following week got a bill for 8 thousand guilders. He was right about no tax, but he hadn't told about all the other funds that Dutch people have to pay into. The actual income tax rate was 3%, the other 48% was made up of these funds.
We got an accountant to help us out and by the time we'd paid him he saved us a few hundred guilders. My advice - get an accountant for the first few years abroad.
12 months later, we received a tax return, we thought nothing of it, filled it in, sent it back and the following week got a bill for 8 thousand guilders. He was right about no tax, but he hadn't told about all the other funds that Dutch people have to pay into. The actual income tax rate was 3%, the other 48% was made up of these funds.
We got an accountant to help us out and by the time we'd paid him he saved us a few hundred guilders. My advice - get an accountant for the first few years abroad.
Join Date: Apr 2004
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Motor Mileage Tax Refunds
Everyone who's posted about claiming tax on MMA is correct. Here's the situation as far as I'm aware:
I'm an Air Cadet Instructor and claim RAF mileage under GAI5037 which says I'm on duty and am entitled to claim mileage (currently 24.4p/mile)
The IR says I should get 45-ish p/mile and I can claim tax on the difference (20-ish p/mile) FOR THE FIRST 4000 MILES ONLY!!!!
After 4000 miles, the IR says I should get (I forget exactly, but I think it's 36p/mile, but don't quote me) This means that eveyone getting 24.4p/mile should still continue claiming. The reason I mention this is - if anyone is getting 40p/mile for example, from an outside company and claim tax on 4p/mile, after 4000 miles, they start owing IR money at a rate of 4p/mile, until their positive claim reaches zero and keeps falling - IE YOU OWE IR MONEY!!!!!
Try to work out your claim first before claiming, otherwise it might cost youy money!! Thankfully this isn't the case for RAF Personel only getting 24.4p/mile.
Anyway, I fill in F1771's every month (and usually fill all 22 lines!) and claim my mileage from PSF. I make sure that March's F1771 ends just around 31st and gets into PSF immediately to get processed by 5th April (Tax year end). As soon as I get paind that claim, I ask PSF for a F5657 Record of travelling claims.
Once my P60 arrives in May, I write to the RAF Tax Office in Cardiff and claim back the difference in mileage rates.
This tax claim is nothing to do with RAF Wherever (other than providing the F5657), so you have to send off:
The covering letter detailing xxx miles at xxxppm, xxx miles at xxxppm etc for the whole year.
The Original P60 (not a copy)
The F5657 Record of travelling claims
Then just sit back and wait for the cheque to arrive (usually a fortnight after they send you your P60 back)
However, you should note that RAF and IR rules differ on what is a duty journey - Medical, educational, resettlement & sport are not IR Duty journeys!!!
Submitting a claim like this prompts them to check your tax for the whole year which means that they won't pester you for a back-claim as it was the IR themselves that checked your tax, nut Innsworth!!!!
I'm an Air Cadet Instructor and claim RAF mileage under GAI5037 which says I'm on duty and am entitled to claim mileage (currently 24.4p/mile)
The IR says I should get 45-ish p/mile and I can claim tax on the difference (20-ish p/mile) FOR THE FIRST 4000 MILES ONLY!!!!
After 4000 miles, the IR says I should get (I forget exactly, but I think it's 36p/mile, but don't quote me) This means that eveyone getting 24.4p/mile should still continue claiming. The reason I mention this is - if anyone is getting 40p/mile for example, from an outside company and claim tax on 4p/mile, after 4000 miles, they start owing IR money at a rate of 4p/mile, until their positive claim reaches zero and keeps falling - IE YOU OWE IR MONEY!!!!!
Try to work out your claim first before claiming, otherwise it might cost youy money!! Thankfully this isn't the case for RAF Personel only getting 24.4p/mile.
Anyway, I fill in F1771's every month (and usually fill all 22 lines!) and claim my mileage from PSF. I make sure that March's F1771 ends just around 31st and gets into PSF immediately to get processed by 5th April (Tax year end). As soon as I get paind that claim, I ask PSF for a F5657 Record of travelling claims.
Once my P60 arrives in May, I write to the RAF Tax Office in Cardiff and claim back the difference in mileage rates.
This tax claim is nothing to do with RAF Wherever (other than providing the F5657), so you have to send off:
The covering letter detailing xxx miles at xxxppm, xxx miles at xxxppm etc for the whole year.
The Original P60 (not a copy)
The F5657 Record of travelling claims
Then just sit back and wait for the cheque to arrive (usually a fortnight after they send you your P60 back)
However, you should note that RAF and IR rules differ on what is a duty journey - Medical, educational, resettlement & sport are not IR Duty journeys!!!
Submitting a claim like this prompts them to check your tax for the whole year which means that they won't pester you for a back-claim as it was the IR themselves that checked your tax, nut Innsworth!!!!
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A few years back I got notice of a statutory fine of 100 quid for failing to send in a tax return. I called them and said I would have returned it if they'd sent it to me in the first place. They said they did - they sent it to RAF Innsworth. I said I'd never even visited the place, let alone lived there, so they waived the fine but said I had to fill in a form and calculate the tax myself as it was now too late to have them do it for me.
I filled in the form, adding my Gran's age to my birthday and trying to follow their instructions. At the end, I calculated they owed me about 900 quid so I sent that in thinking they'll check it and find out we were in fact even (There's nothing complicated in my return - PAYE plus an AVC). I got a cheque from them!
Next year, as I'm filling out the new form, I get a phone call from the Inland Revenue auditing office asking me why I thought they owed me the money the previous year. I said because when I filled their stupid form in, that's what it came out as!. They said OK. I calculated the tax myself again and found out they owed me about 600 quid and got another cheque!
This year I calculated it myself and we were about even, but subsequently got notification that I owed them many thousands! I couldn't find the calculation booklet but just applied the basic allowances from the IR site to my pay and thought I was still correct (I am now an ex-pat overseas but paying full UK tax as if I lived there). Phoned them and they said you didn't fill in the box for the AVC. Luckily I had copied the return and could prove that I had. They then said I couldn't have the normal intiial tax free part as I hadn't ticked the appropriate box. Again, I could prove that I had.
This has happened to a lot of people I know this year and I suspect it's down to the IR employing temporary staff to complete the tax return or just a very incompetent workforce. But the moral of the story, is don't assume, check!
I filled in the form, adding my Gran's age to my birthday and trying to follow their instructions. At the end, I calculated they owed me about 900 quid so I sent that in thinking they'll check it and find out we were in fact even (There's nothing complicated in my return - PAYE plus an AVC). I got a cheque from them!
Next year, as I'm filling out the new form, I get a phone call from the Inland Revenue auditing office asking me why I thought they owed me the money the previous year. I said because when I filled their stupid form in, that's what it came out as!. They said OK. I calculated the tax myself again and found out they owed me about 600 quid and got another cheque!
This year I calculated it myself and we were about even, but subsequently got notification that I owed them many thousands! I couldn't find the calculation booklet but just applied the basic allowances from the IR site to my pay and thought I was still correct (I am now an ex-pat overseas but paying full UK tax as if I lived there). Phoned them and they said you didn't fill in the box for the AVC. Luckily I had copied the return and could prove that I had. They then said I couldn't have the normal intiial tax free part as I hadn't ticked the appropriate box. Again, I could prove that I had.
This has happened to a lot of people I know this year and I suspect it's down to the IR employing temporary staff to complete the tax return or just a very incompetent workforce. But the moral of the story, is don't assume, check!
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No man in this country is under the smallest obligation, moral or other, so as to arrange his legal relations to his business or to his property, so as to enable the Inland Revenue to put the largest possible shovel into his stores.
The Inland Revenue is not slow - and quite rightly - to take every advantage which is open to it under the taxing statutes for the purpose of depleting the taxpayer's pocket. And the taxpayer is, in like manner, entitled to be astute to prevent, as far as he honestly can, the depletion of his means by the Revenue.
The Inland Revenue is not slow - and quite rightly - to take every advantage which is open to it under the taxing statutes for the purpose of depleting the taxpayer's pocket. And the taxpayer is, in like manner, entitled to be astute to prevent, as far as he honestly can, the depletion of his means by the Revenue.
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My advice would be to write to the highest authority possible in your service.
Three weeks after I left the RN in Jan 2002 I got a letter from MoD Accounts stating that due to "belated receipt of information" I owed Her Majesty's Royal Navy the sum of £13. This after having made several visits to my UPO prior to leaving to ensure that everything was in order, which I was assured it was. I sent them a cheque, enclosed with a very snotty letter.
But I also received the very same week the customary "thank you for your service" letter from the Second Sea Lord. So I wrote him a letter thanking him for his, and commenting on the above and what I thought of. Something along the lines of "their is no excuse for the Officer of the Watch having the ship late at an RV, despite what belated information he or she maybe in receipt of".
2SL wrote me a second letter, in which he explained how he had investigated the matter personaly and that is was a disgrace and that I should not have had to pay, and that the necessary corrective action had been taken etc etc.........
Three weeks after I left the RN in Jan 2002 I got a letter from MoD Accounts stating that due to "belated receipt of information" I owed Her Majesty's Royal Navy the sum of £13. This after having made several visits to my UPO prior to leaving to ensure that everything was in order, which I was assured it was. I sent them a cheque, enclosed with a very snotty letter.
But I also received the very same week the customary "thank you for your service" letter from the Second Sea Lord. So I wrote him a letter thanking him for his, and commenting on the above and what I thought of. Something along the lines of "their is no excuse for the Officer of the Watch having the ship late at an RV, despite what belated information he or she maybe in receipt of".
2SL wrote me a second letter, in which he explained how he had investigated the matter personaly and that is was a disgrace and that I should not have had to pay, and that the necessary corrective action had been taken etc etc.........