Paying Tax When Deployed on Operations

Discussion in 'Army Pay, Claims & JPA' started by Baghdad-Brit, Nov 3, 2004.

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. Someone remind me why we pay tax on operations. I know about the infamous "x" factor but being surrounded by income tax-free gloating Americans and Aussies is a bit of a downer.

    Even worse is that when I applied to my local council to allow my council tax bill the 25% discount for sole occupancy (my other half) whilst I am away, they said no as it was still my primary residency and that "I could go home whenever I wanted to"

    aaaaah, ignorance is bliss. Another financial punishment for owning a home and being on operations. :!: :!: :!: :!:
  2. X-Inf

    X-Inf War Hero Book Reviewer

    And yet, if you had been sent to prison instead your better half would have been able to collect council tax rebate; even though you both have the same chance of going home when you like!

    The joys of a pc society.
  3. I have to say that this is something that never ceases to amaze me.

    The way in which that tight fisted fifer can get away with taxing soldiers on ops is the height of hypocracy.

    My only suggestion is for units currently posted on Telic should join together and make representation to the Treasury for an explanation as to why this is so?

    Perhaps with copy to the FT , Telegraph or Times?

    Legally there is no reason why you should be paying tax? National Insurance is another issue, but tax no.

    Since you are in effect earning your wage outside of the UK there is an argument that you should be tax at a local level (i.e. where you are based). This is quite common for multinationals.

    There are pros and cons for both sides (con is that you are being paid by an UK employer), however, the Treasury could do the noble thing and waive their right to collect tax on the basis that you are outside the UK as the Yanks and Diggers do!

    But we are talking about Gordon Brown here.
  4. If you're a civvy and spend most of the financial year away from home then you don't pay income tax. There are fairly strict rules as to how many days you can be in the UK and so on but it's a straightforward thing to sort out if you've got the evidence. So why are squaddies treated differently ?
  5. This has been a bone of contention in the forces for years, practically if you were posted overseas for 3 years.

    But unless Gorden Brown makes it a special case (and I doubt he will) you will pay Income Tax as a UK Resident, even if you fulfil the following Tax Rules:

  6. This X factor thing really annoys me. My pay statement simply says "pay" an makes no mention of the X factor. Why isn't it shown on our pay statements, and why are we taxed on it? We are arrsed about more than ever these days, yet the X factor never goes up. Why isn't it increased when we're on tour? And no I didn't join the army to be away every Christmas, and on tour during 9 out of the last 10 years :twisted: Don't mind doing my share, but someone is kicking the arrse out of it. :!:
  7. If I was called up would I pay Income Tax or NI(Id probably pay NI) My Primary residence is definately not in the UK. And Gordy hasnt had a penny of me for 12 months.
  8. X-Inf

    X-Inf War Hero Book Reviewer

    On the radio news this morning it has been announced that Glasgow are going to discount Council tax for any soldier serving in Iraq by 50%. Good on the Weegies :D , I hope other councils follow suit.

    However, the person being interviewed used exactly the scenario I gave above re crims in almost the same way - scary 8) or are councillors in Glasgow now surfing Arrse?

    There is no chance that tightarse Brown will make a special case for servicemen & women unless there is a chance of a vote or two out if it. :evil:
  9. ugly

    ugly LE Moderator

    Tightarse brown is the same as all the other gits before him. You pay because it is taken out at source by the Army who are funded by the treasury. My Gt Uncle a Canadian in WW2 and his division went on strike so as to be exempt Income tax when overseas. As they had to be volunteers and could withdraw at any time before deployment it was a powerful tool. I think the only way it would work is for the TA and reserves to refuse service. I cant see them sending whole companies to civvy prison for refusing to pay tax overeas especially as the MOD is supposed to agree to make up the salary differnce. I would love that make me a brigadier then!

    "fortunatly unfit for service due to injuries resulting in a failed medical!"
  10. Far be for me to promote dissent, and of course i would never advocate, BUT...

    what if............the British Army threatened strike action over its pay! or refused to soldier. was done in the 60's!!!!!

    with most troops connected via the net, surely it wouldn't be that hard to organise. And what are they gonna do - send you to Iraq!

    (bound to be pulled by a moderator)
  11. ugly

    ugly LE Moderator

    Industrial unrest is only effective when it hurts the Powers. Therefore refusing to deploy as a reservist is more effective. Can you imagine troops in the field refusing to soldier? I know of none that would sober! Besides who would refuse to return fire and have a cabby when given the chance?
    I still think that action is best taken when at home so the press get full opportunity of coverage and what would they do to the TA? Sack them is about all they could do. It would have to happen prior to being activated as they may make examples of a few and **** around the rest to discourage you!
  12. Well....its been here for 15 mins now and it is still here.....maybe the moderators think that this is not such a bad idea?

    And Arrse could even host the party!

  13. Let's face it beind ripped off financially is just part of the honour of wearing a green suit, looks at insurance...

    I just got refused a mortage, not because I could not afford it but because I could not guarentee that I could be comutable!

  14. That'd be lower than a rattle-snake's belly - even the fire service wouldn't stoop to that... Doh! :wink:
  15. Just to really rub salt into the wounds, the Aussies (having completed any operational tour in the forces) are entitled to an $(Aus)80,000 loan to help buy a house at 2% below base rate for any duration.

    Futhermore, they do not pay tax for any month where they have served even a day overseas which is why they always get posted on the last day of each month and any recce party arrives on the 29th of the month and departs on the 3rd of the following month - 2 months tax free pay thank you very much.

    The Americans only pay tax on any amount of pay over and above what an enlisted man can earn. Therefore only officers pay tax when they earn more than the top Sergeant major can in the forces. Nice system.

    but it is okay because we get LSSA and free monopoly (very popular in Dogwood at the moment)............I wonder if I should make a Baghdad version (go directly to Aby Ghraib do not pass the mosque and get abused by etc etc).

    Got to go - incoming indirect fire is distracting me.