Medical Discharge

Discussion in 'Finance, Property, Law' started by yorkiemalone, Jan 18, 2010.

Welcome to the Army Rumour Service, ARRSE

The UK's largest and busiest UNofficial military website.

The heart of the site is the forum area, including:

  1. It has come to light that if you were medically discharged then the rules state that your SERVICE PENSION ( for the number of years served!) is made TAX FREE

    BEFORE you start read this next bit careFULLY!!!!!!

    This NOTHING to do with WAR PENSIONS that is COMPLETELY a DIFFERENT subject


    What has happened is that the HM REVENUE & CUSTOMS are sending out letters to people who have been medically discharged and telling them that the PAYMASTER is to take from your pension 20% TAX........

    There is a 0845 number to phone but we do not know if it is a premium rate number as other Govt Depts have used this scam...

    OK.... you lot on here might have the wherewithall to fight it and pick up a phone and give the office grief .........
    What of your dad?? what of your grandad??
    What of the old WW2 bloke who has past his sorting things out date...
    These are the ones that the dear!!! Mr Broon is having a go at...

    ie............. easy targets


    So please check on the people you know... put the word round and get ready to FIGHT.. with the pen or keyboard!!

    I have told the RBL....
    I have told and taken a copy of the letter to my MP
    I have told the Royal Marines Association...

    CAN YOU.... tell the RBL... tell your MP.... and tell your Association....

    we need to get together on this one ASAP.....

    Below is a copy of the letter....



    I will say it AGAIN...... for the ones at the back


    it is your SERVICE PENSION for the number of years served

  2. Just to say who I am

    Yorkie Malone joined Royal Marines 1965 kicked out Med Disc 1985

    enjoyed it all....

  3. I thought there were two classes of medical discharge. First is service related and is tax free, second is non-service related and is taxable.

    Edit: just to make clear, I am referring to service pension for MD'd people there, not those who have a disability that would put them into War Pension territory.
  4. craign...

    If you come out medically discarged and your injuries are assessed by War Pensions at over 20% then your Service Pension is Tax Free.... that is the rules.. which is part of the Armed Forces Pension Scheme....

    What this letter is doing is over turning that by saying it is taxed at 20%???? BUT???? why 20% which is not a number of the tax amount paid.... It appears to be a number taken off the wall just to get at the venerable...

    Will get the rules.. wait out..

  5. The rules!!!!!

    Service Invaliding Pension
    When you receive your Service
    Invaliding Pension (SIP) it will
    initially be taxed as earned
    income. However, your SIP
    may be paid tax-free following
    the VA’s decision on whether
    your Principal Invaliding
    Condition (PIC) was caused or
    made worse by your service. If
    the VA find your PIC and any
    consequential conditions:
    • Attributable, and
    awards either a gratuity
    (where the assessment
    of your degree of
    disablement is between
    1 and 19%) or a War
    Disablement Pension
    (WDP – assessment at
    20% or above) – your SIP
    will be paid tax-free. You
    may be entitled to receive a
    refund of the tax you have
    paid back to the date you
    first received a SIP. (Note: if
    your PIC is Bi-Sensori
    Neural Hearing Loss
    (BSNHL) and your award
    was made after 7 January
    1993, the degree of
    disablement must be 20%
    or more).
    • Attributable, but the
    assessment of your
    degree of disablement
    is nil% (that is, neither a
    gratuity nor a WDP is
    awarded) – the SIP will
    remain taxable. However, if
    the degree of disablement
    increases, and an award is
    made by the VA, the SIP will
    be paid tax-free from the
    date of the revised degree
    of disability.
    • Non-attributable – your
    SIP will remain taxable.
    Service Attributable
    Service Attributable Pensions
    (SAP) are paid tax-free to
    pensioners. This includes
    when the SAP is paid at the
    SIP rate because the SIP is
    higher than the SAP.
    Terminal Grant
    This is paid tax-free
    regardless of the tax status
    of your pension.
    Additional Attributable
    This is paid tax–free.
    Attributable Pension and
    Lump Sum
    These are paid tax-free to
    the pensioner.
    Gratuities and War
    Disablement Pensions
    All gratuities and War
    Disablement Pensions are
    paid tax-free.

    MR BROON is breaking those rules!!!!

    now there is a surprise!!!!

  6. Nope, you're not getting it. Your pension is only non-taxable if your injury is service attributable. If you fell down the stairs pissed after a mess do and your injuries resulted in a MD then your pension is fully taxable, even if you're paraplegic with a 80%+ disabled assessment.

    As a point though, if you are getting anything flat rate taxed you need to be doing an Annual Return for the tax man because your tax bill is highly unlikely to be right overall.
  7. craign..

    I was Med Dis in 1985 with Trenchfoot... since then my service pension has been TAX FREE

    My mate who was on the Ardent was Med Dis in 1991... his pension has been TAX FREE... it was him who got the letter above...

    A Royal Marine in Plymouth who was Med Dis many years ago and his pension is TAX FREE has just had a letter...

    Yes I am getting it!!!!

    I was NOT pissed when I got Trenchfoot
    My mate was not pissed when he was blown up and had a ship sunk under him

    I know the rules as I have had to live with them since 1985....

    The rules are that if you are Med Dis and it is their fault ( service attributable!!) and injuries are more than 20% then it is TAX FREE

    As for an annual tax return... I had my first one this year as I was 65 at Christmas.......... and I'm awaiting the result of that....

    In nearly ALL the cases I have come across the injurise are ALL service attributable... it was the nature of the job as a Royal Marine....


    I put this on here to warn people off of the scam that this government are trying to pull...........

  8. If you have an Attributable injury then your pension is tax free. This is most likely an idiot error rather than planned tax con. If you all have the same tax office then you can be sure that someone there is an idiot.

    It's most likely an easy one to fix as the tax people are (generally) very helpful. If you call the number on the tax letter and tell them that your pension was assessed as non-taxable then they may take immediate action and return it to the previous status. If they say they can't then call the SPVA on 0800 169 22 77, they'll either give HMRC the info or give you a letter to say your pension is tax free. Simple matter of forwarding it on then with a note to say that others have the same problem.

    After years of dealings with HMRC as taxpayer and company owner, my abiding experience is that if you talk to them civilly they'll bend over backwards to help you (maybe because they're not used to people being nice to them) but if you start aggressive then their answer will usually always start with "No".
  9. I received the tax coding notice today!! I am on a SIP and also war pension with my condition assessed at 50%.

    Took about 15 mins to get through to the Tax office! Once through " Lynsey from Livingstone took my enquiry..went away for 5 minutes then assured me it was their mistake ...the old computer error!

    I am to receive a new notification showing no tax to be paid. :D

    Apparently notices gone out to many individuals.

    Advise you to ring your tax office to sort. Don't panic Mr Mannering!!

    Good luck chaps and chapesses :D
  10. For those wanting to avoid using the 0845 number. Go to Put in the 0845 number on your letter and you may be rewarded with a standard dialling code.

    e.g 0845 300 3949 for the Cardiff Tax office is listed as 029 2032 5000 on this site. :D
  11. Cheers Ex-squaddie..... at least you had the where-with-all todo something about it... how many are panicking??? that is the question???

    I liked the one about.... computer error... WHO??? fed it in???

    Oh hum


    PS cheers for the number ..
  12. Hi all

    Be intrsted as to how many of these letters have arrived on door-steps in the last few days. I received mine yesterday and acted today (with advice from my Dad who is a retired accountant of fifty years who has made his living dealing with Tax issues). Remain calm and clear. I spoke to Kevin at the Tax office and within 10 minutes this had been sorted. HM will never repeat never "make mistakes".
    Someone somewhere has made a **** up but even Kevin admited that they have received "several" calls on this subject.
    Ring HM Tax and state the case clear and simple and evrything will be fine.
  13. Napoleon_Bunnyparte

    Glad you all sorted as I am. I also rang Paymaster who stated that is your pension is flagged as Tax Free they won't act on a notice from HMRC to start charging tax.

    I think the whole point of this discussion is...what about those with no help and advice who may be vulnerable...these notices may also be targeting servicemen as far back as the 2nd World War!!

    They must have clever computers at HMRC that put the notices into envelopes, stamp and post them acting on their own!!

    The machines are taking over!! :evil:
  14. 186,115 ex-servicemen got this incorrect tax letter

    This bit is the really annoying bit:

  15. I have also recieved one of these letters but my code is D0, hence everything on my pension would be paid at 40%.

    I've had it for 11 years at o% so will have to phone on Monday.

    Thanks for the info, its put my mind at ease.