Pda, agree 're pure finance. Also Lincolnshire though we are moving but could not afford to move out of Lincolnshire. In many respects Lincolnshire is similar to the Moray area as I remember it. Long distances to anywhere, limited range of shops and so on though the internet levels that playing field.

Not strictly true. The last operational RAF flying base in Scotland is in an IV postcode - many internet companies view IV postcodes as "remote" and thus add delivery charges, even though a significant chunk (the majority) of the postcode is Mainland UK. Petrol prices in the area are, or were, significantly higher than the south of Scotland/England. Food prices were also often higher, even if locally grown. Childcare charges were also similar unless you are using a Norland Nannie or Montessori Nursery School down south. Cost of living between Odiham and Lossie will be different in many ways, but probably not as different as some might think.

Roland - fair point! Though I'd suggest as soon as you pay for your own accommodation one's eyes don't water quite as much up north! Lord knows what they're going to do with future accommodation model to sort that!

This issue was major news on BBC Breakfast tv this morning for viewers in Scotland. Sounds like someone has raised the argument upwards but the bottom line soundbite was that 'MOD is looking into a special allowance for servicemen/women based in Scotland who are being penalised by the new Scottish Tax rules..'

So no clear direction yet but at least our Whitehall warriors are aware there is a problem....

1) Service personnel based outside Scotland during the last Holyrood election and subsequently assigned to Lossiemouth took no part in the democratic process which resulted in the recent tax increase. The 'democratic choice' argument advanced by an earlier poster is entirely bogus.

2) The fact that the proceeds of the tax rise are being used, in part, to fund a public sector pay rise makes the issue doubly toxic given that service personnel will not be included, Armed Forces pay being a matter for Westminster.

Now that the matter has been brought to light I can't see it passing the political 'smell test' and some kind of fudged solution seems inevitable. One would hope that any funds used to compensate personnel stationed in Scotland will come from Holyrood's newly-enlarged coffers and not the MoD's already-stretched ones.

How do the 'Mericans handle it? If you are posted to a different State you have different Sales Tax and Income tax in many states..................

HH
Interesting but, UK Gov played a blinder when we raised the issue of US vs UK taxation last time with deployed taxation....they gave the OP allowance of about the lowest rankers tax...for everyone! :mad: Wonder if they will apply that to this situation. I think they might! :*

OAP

HH

I seem to remember that an exchange Officer said that they have the choice of which state to file taxes in.

HH - I believe you're right. They can nominate a 'primary residence' a bit like us, but that can be hypothetical.

Out of interest, anyone know what happens if you're married/unaccompanied and live in the mess in Scotland 5 days a week, commuting south of the border on weekends?

PBA the DIN refers to main residence. In your example main residence would be S of the border so no additional tax due. IIRC the examples in the DIN are v similar to your scenario.

Thanks for that. Yet another reason to own a small flat somewhere far away!

It will be interesting to see how they do play it as there are definitely some potential poo traps. Give an allowance for extra costs in Scotland and no doubt others will try to argue for allowances elsewhere e.g. reintroduction of London allowances that were largely scrapped to fund austerity. Worst case, recognising regional differences could well be seized on by those who oppose nationwide public sector pay agreements. For once I actually have a degree of sympathy for the Pay Colonels trying to unravel this one without triggering second & third order consequences.

I would have thought it an easy one to fix; all UK MOD employees pay a standard rate of tax as set by HMG, wherever they are posted around the world. Of course the HMG rate would be based on English taxation levels. Ergo, everyone gets paid the same income per rank/level/grade and everyone pays the same tax!


Isn't this a similar case with CILOCT?

"MOD employees" could mean anyone who is a Civil Servant and may be hired and be in the same location for years eg at Bristol or C London or Coulport

Better to restrict it to serving personnel in the Armed Forces who can be posted without the option of refusing - the numbers would be much smaller and so the "loss" to the Scots that much less

Party Animal,

I believe that’s the argument they use to justify why UK forces don’t get tax free pay in operational areas when allies such as US personnel do. Would seem to be a sensible thing to say you’re employed by the MOD based out of London and therefore pay London tax rates. I’m sure wee Jimmy Krankie would kick off though claiming that yet again Whitehall was undermining the Scottish governement’s right to set taxes and generate funding thereby turning it into yet another independence whinge.

I don’t know about today’s arrangements, but when I served I was paid from the RAF budget (i.e. Whitehall) and my pay was credited to my bank - which remained Barclays in Witney wherever in UK I happened to serve. Tax, GP & NIS all deducted at source. Where would Scotland come into the equation? It appears that Scottish taxation is being improperly applied. (Thinks: I didn’t even pay council tax when living in or living in AMQ.)

As I said earlier, where will the new tax rates be applied? MOD?

What criteria will be used to charge jock tax? Will the rate be refunded for detachments out of Scotland, is so what period would count. Similarly for detachments in? Nightmare.

If you were to read the DIN, that would all become clear.

And Pensions too!
 

While we're at it what about veterans (Pensioners)? I served in the UK armed forces whilst earning my RAF pensions. My pensions are paid into an English Bank by an English Agency and are taxed at source - but using a Scottish Tax Code! Granted, I choose to live in Scotland but that doesn't make me Scottish!

Atg, please enlighten us