Child Tax Credits/Working Families Tax


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 :D


Book Reviewer
Whilst I totaly agree with your sentiments LSA is taxable and therefore would be taken into account.

LOA however is a non taxable allowance. But from experience this also gets taken into account with the CSA.

Thanks so much for your reply.

I agree, LOA is supposed to be tax free, but when you fill in your following year review packs, plus dependent on your pay increment and any other extras, which is shown on your "Gross to date" p60, this is not fully taken into account and this can affect your tax credit/child tax credit awards. That is if you receive LOA, temporarily. Any issues with that, contact tax office or pay clerk for advice.

As for the CSA, that is another topic and sometimes they do waiver those extras. Anyone can call the CSA for that information and if they are worried I suggest they do so.

Smiles to you all :D

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