Armed Forces Tax Refunds: Everything You Need To Know

Basic Tax Training for MOD Personnel

You do a job too tough for most to handle, and it's gruelling enough without the taxman picking your pocket. At RIFT Tax Refunds, we spend every day prying HMRC's sticky fingers out from where they don't belong. Far too many MOD employees are losing cash that should be theirs, and don't even know it.

We're here to make sure you're trained and equipped to battle the taxman on even terms. Taking on HMRC can feel like an uphill slog over rocky ground. However, armed with a few vital pieces of information and the right backup, you'll get back what's yours every time.

Here are the answers to some of the most important questions we hear from you guys every day:

Some in the Armed Forces say we're not allowed to make a claim. Is that true?

No, it certainly isn't - and the MOD has confirmed you can claim. 

You can get tax refunds for your travel, as stated in DIN 2015DIN01-005. There's been a lot of confusion around tax refunds, and we've worked hard to clear it up with both the MOD and HMRC. Personnel were confused about the term ‘temporary postings’. Some thought that claiming a tax refund on HDT broke HMRC rules. Some thought any repayment would get clawed back later by HMRC. Some even thought claiming a refund would mess up your HDT allowance tax exemption. None of this is correct; the MOD has confirmed you can claim a tax refund, so have HMRC and we’ve got over £20 million back for service personnel to prove it. 

What does the MOD say about what we can claim for? 

2015DIN01-005 officially confirms you can get refunds on your travel expenses. It also says you can use an agent to make a claim for you. That's where we come in. If you don't have the time or know-how to grapple with HMRC yourself, we've got you covered.

What information do you need from me? 

The most important things we need are a list of bases you’ve attended, all of your monthly payslips and any assignment orders you’ve got. Make sure to include any time spent on courses, deployments or tours of duty. We also need you to sign three forms for HMRC so we can speak to them on your behalf, without these we can’t get the job done.

To speed thing up, anything you can get us from the checklist below will help. Don’t worry if you’re missing any of these, though.

Checklist

• Copy of your photo ID (driving licence or passport).
• Proof of address (e.g. utility bill).
• Wage slips for the period you're claiming for.
• MOT certificates for each vehicle you’ve owned in that time.
• P60 End of Year Certificates (if any).
• P45’s for the period you are claiming for (if any).
• Receipts for Mess Dress.
• Supporting documents, if you've got any other money coming in.

Why do I need to provide wage slips? 

Your wage slips tell us whether or not you've been given expenses toward your travel. If you have, they come off your claim. If you haven’t, we need the wage slips to prove that. We need all the wage slips for the period you’re claiming for.

What if I haven’t got all my wage slips? 

No problem. You can download them from the JPAC website.

What if I haven’t got my P60’s? 

RIFT can get these for you from HMRC.

Do I need to keep my assignment orders? 

Yes, definitely. We need these to back up your claim. Keep a copy of each of your assignment orders for each base you've travelled to. You can print these from JPA, but do it fast:  they're deleted after 60 days.

How quickly can I get my money? 

That's pretty much up to you. Once we've got all your information, it usually takes around 2-4 weeks to get you registered as our client with HMRC and put your claim together. HMRC then take another 6 to 8 weeks on average to pay out. Our RIFT Rapid Refund service can fast-track your claim. We'll pay you within 24 hours of completing it, then wait for HMRC to pay us (terms and conditions apply).

Some of my friends and colleagues would be interested in this. Should I tell them? 

Of course! Call us first, and we'll give you a unique Refer and Earn code. Give the code to your colleagues and tell them to quote it when they call. We'll pay you £20 for each one that qualifies for a tax refund.

I receive Get You Home Travel (GYH) and/or Home to Duty Travel (HDT) expenses. Can I still claim?

Most likely, yes. The amounts you receive don’t normally cover everything you’re entitled to. We have to deduct HDT or GYH allowances from any claim we make, as both are paid non-taxed.

I live in married quarters. Can I claim? 

If you live in married quarters and spend your leave periods there, that'd normally count as your main residence. That's true whether on or off-base. Your claim would be for travel between your married quarters and your daily workplace. If you already receive a Home to Duty (HDT) allowance for this, we would claim for any shortfall.

I live on base. Can I claim? 

If you live on base part of the time but go home for weekends or leave, then yes. Your claim would be for travel between your home address and your workplace. If you already receive a Get You Home Travel (GYH) allowance for this, we'd claim for any shortfall.

Can I claim the mileage incurred whilst I was training? 

It will depend on the type of training. HMRC has strict rules about what is classed as an allowable expense around training. If it was an essential part of your contractual duties of employment then we might be able to claim for the travelling expense.

Can Reservists and Territorial Army personnel claim? 

It depends. Reservists and Territorial Army personnel generally serve mainly at one permanent location. HMRC won't let you claim unless it's for travel to temporary workplaces. However, if your circumstances are different then we can certainly look into it.

Will the MOD allow me to claim a tax refund on Home to Duty Mileage? 

Yes. You can reclaim the difference between HMRC's rate of 45p per mile* and the MOD's 21p per mile tax-exempt allowance. To claim this, you must be on temporary duty. Check with RIFT if you're not clear where you stand.

I’m based in Germany/Cyprus, can I claim? 

Yes, you can claim for travel to and from a UK residence. However, if your family has moved overseas with you, your accommodation there would normally count as your main residence.

I live with my partner/parents, can I claim? 

Yes, if that's your main residence.

Can I claim for washing my uniform? 

No, laundry costs are included in your annual personal allowance instead.

Can I claim for Mess Dress? 

Possibly, if you have the receipt and it's in the last four tax years.

Do I need receipts for flights? 

Yes. The cost of flying varies a lot, so we need evidence of your actual expenses.

Can I claim if I've been at my base for more than 24 months? 

Under HMRC legislation a posting of more than 24 months is "permanent". That means the temporary workplace rules don’t apply. However, it can make a difference if you were expecting to be there for a shorter time. We'd have to look at your specific circumstances.

All fiddly technicalities aside, the bottom line is this, you could be owed a refund if:

• You drive your own vehicle or use public transport to get from your home to base.
• You're posted to a base for 24 months or less.
• Even if you end up there for longer than expected, you can still claim for the first 24 months.
• The period you're claiming for is within the past four year.

An average four-year claim is worth £2,500. There's no reason to let HMRC hold onto money that's legally yours.

Get in touch with RIFT Tax Refunds and we'll help you take the fight to the taxman.