Hi to everyone and welcome to an issue which could affect all service families, whos spouse/partners are deployed.
As a mum of 4 and married to a serving solider. Finances are always one of the subjects most people fret over, especially while on deployment. This section is mainly to outline the parts of Child Tax Credits and families Working Tax Credits.
If you are not fully aware of this next paragraph, you need to speak to your Families officer or PAY office or Tax office.
Whatever you get as in extra pay from the Army in LSA, is taken off your award notices of the above credits the following year!
Your Bounus can also be taxed if its added into your main pay. So please make sure you double check.
I have spoken to the Tax Office and they confirmed that the extra amounts will be taken from your awards notice the following year. if not declared in the P60 and they find out, its going to get messy for you.
This obviously makes me worry, that the money our families get, is being taken away even though our families dont deploy. This is not their fault.
Our soldiers work damn hard for what little extra they get and to me the families should not have to pay for that either.
I do have a letter which was sent to someone outside the Military as no one seems to know the answer within the Military. I am hoping that this letter will help raise awareness. I have suggested in the letter that whilst soldiers are deployed and after deployment, the tax office should NOT count LSA or Bonus as extra income.
P.s I think this also could include re-enlistment bounties and any allowances you claim through JPA system. Please check this also as the Tax office could not give me an answer on that.
If any of this is incorrect, please make me aware of it, That way I can forawrd that information to the AFF rep who is helping on this.
Smiles to you all