Paying Back FRI
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Paying Back FRI
Hello to all, as a new member I apologise for wading straight in with a question but with the depth of knowledge amongst you all I wondered if anyone out there has experience of what happens to someone (OK me) who was optimistic enough to take an FRI last year but is now starting to doubt the wisdom of doing so and considering PVR. I know that I have to pay it all back gross but how does it work? Do I have to do so before PVR'ing or is it removed from my gratuity when I leave (I have passed the 38 point), and how do you go about getting the tax back? Any info gratefully recieved.
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Sadly, the new rules are horribly specific. If you apply to PVR to exit before having completed the Return-of-Service attached to the FRI, you have to pay the FRI back in a single gross lump sum before your application to PVR will be accepted. Whether it would survive a legal challenge I don't know, but them's the rules!
Regards
Ginseng
Regards
Ginseng
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And why do you think you can reclaim the tax? The Service paid the tax for you when giving you the FRI so the total cost to the RAF was what you got plus tax which came off the Defence Budget and went straight to Mr Brown. If you're going to cut and run then the RAF is entitled to receive all of the money it spent back. Then we can buy more bombs and bullets for the chaps in Afghanistan!
Impiger - duh - he pays back the FRI inclusive of tax, e.g £30k. He only got £30k minus tax. Therefore the RAF is reimbursed and he goes to the taxman begging.
Math not your strong point huh?
Math not your strong point huh?
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happy days
Further to my last, you may have an argument if you were not asked to sign a declaration when you accepted the FRI that you would pay it back gross under the new rules. This might be available if you accepted the FRI prior to those rules coming into force (in autumn 06). You might then be able to defer paying it back until your actual exit date, or even only in part, or not at all. You would need to spend a few quid to get some proper legal advice, and I can't guarantee you success. When the new rules came into force (by change to JSP 754), they were linked to a requirement that if you accepted an FRI, you would have to sign a declaration promising to pay it back gross before you were allowed to PVR. If you have not been asked to sign that declaration, you might just have a case.
As regards the tax, my best advice is that if and when you have documentary proof that you were paid the FRI net of tax, and you have paid it back gross, write to your tax office setting out your situation, include copies of the documents, and explain that, given the large sum that is likely to be involved, you naturally wish to reclaim the tax paid as soon as is resonably practical. Ask how you should go about this. HMRC has a duty to behave reasonably towards you as long as you have been completely open and honest, and in my experience they will do so. You may just receive another form to fill in first, but the hassle should be worth it in the end.
Regards
Ginseng
As regards the tax, my best advice is that if and when you have documentary proof that you were paid the FRI net of tax, and you have paid it back gross, write to your tax office setting out your situation, include copies of the documents, and explain that, given the large sum that is likely to be involved, you naturally wish to reclaim the tax paid as soon as is resonably practical. Ask how you should go about this. HMRC has a duty to behave reasonably towards you as long as you have been completely open and honest, and in my experience they will do so. You may just receive another form to fill in first, but the hassle should be worth it in the end.
Regards
Ginseng
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FRI repayments
Hi,
I took the rear crew FRI nearly 3 years ago when things weren't quite as screwed up by the Treasury. I am now looking to jump to the Kiwis or Aussies but have another 30 months to go to my 22 point. It'll take some time to go through the process but not that long. I have heard a rumour that you might be able to get a waiver for some of your return of service against the FRI - anyone heard anything similar, and if yes, how do I go about it?
I took the rear crew FRI nearly 3 years ago when things weren't quite as screwed up by the Treasury. I am now looking to jump to the Kiwis or Aussies but have another 30 months to go to my 22 point. It'll take some time to go through the process but not that long. I have heard a rumour that you might be able to get a waiver for some of your return of service against the FRI - anyone heard anything similar, and if yes, how do I go about it?
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Gents, I'm interested in this too...
I'm returning from a - let's say "out of area" - tour in September, with an IPP of July next year.
I took the 3yr FRI - but can effectively stop working and start leave in January next year. That means I'll actually work for 3-4 months before being not much use anymore. If I'm offered a job that starts next February - can I leave, or would I have to repay the gross FRI for the sake of 5 months, on paid leave?
Not asked the DeskO yet.
I'm returning from a - let's say "out of area" - tour in September, with an IPP of July next year.
I took the 3yr FRI - but can effectively stop working and start leave in January next year. That means I'll actually work for 3-4 months before being not much use anymore. If I'm offered a job that starts next February - can I leave, or would I have to repay the gross FRI for the sake of 5 months, on paid leave?
Not asked the DeskO yet.
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To all those with helpful info, thanks, especially Twisted to Fit.
Having looked at the other similar thread I spoke to the tax folks this morning who know nothing about it! Anyone got any first hand experience of this one....I have not made the decision yet but am researching the options available.
Having looked at the other similar thread I spoke to the tax folks this morning who know nothing about it! Anyone got any first hand experience of this one....I have not made the decision yet but am researching the options available.
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A friend of mine has just been through this.... I've asked that a messege be passed on to him about this thread, so hopefully he shall appear at some point and pass on his knowledge
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Happy,
Sorry to be slow off the block on this one - I thought that the whole paying back of FRIs was so common now that the relevant Service pay offices were well versed in assisting those wishing to do this.
Anyway, check your PMs - although still serving I have paid mine back and just waiting for the right job to jump. 50k certainly wasn't enough for me and to be totally honest the bean counters are dreaming if they think that 100k is going to tempt me to stay.
The average divorce cost more than that and the quality of life at the moment is no where near 100k.
Anyway, I digress - give the number/name a ring in the PM for the tax office, really helped me out and very friendly indeed. All sorted in 2 weeks. But you do have to start the ball rolling by paying it all back in FULL. And make sure you get a receipt and covering letter to say that you have paid it all back.
Good luck!
Sorry to be slow off the block on this one - I thought that the whole paying back of FRIs was so common now that the relevant Service pay offices were well versed in assisting those wishing to do this.
Anyway, check your PMs - although still serving I have paid mine back and just waiting for the right job to jump. 50k certainly wasn't enough for me and to be totally honest the bean counters are dreaming if they think that 100k is going to tempt me to stay.
The average divorce cost more than that and the quality of life at the moment is no where near 100k.
Anyway, I digress - give the number/name a ring in the PM for the tax office, really helped me out and very friendly indeed. All sorted in 2 weeks. But you do have to start the ball rolling by paying it all back in FULL. And make sure you get a receipt and covering letter to say that you have paid it all back.
Good luck!
