TA - Tax

Discussion in 'Join the Army - Reserve Recruitment' started by Gareth_Cooper, Feb 13, 2009.

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  1. Hi,

    Sorry if this has been asked before but I could not find it! In the TA obviously 99% have full time jobs in civilian life. I was wondering is the TA classed as a second job and how much if at all do you get taxed?

  2. Yes & basic rate.
    Bounty is tax free
  3. TA can only ever be taxed as a second job, ie at Basic Rate (BR) except on mobilisation, etc, where you effectively become part of the regular army. If you only earn from TA (drill nights and W/E training) in any given tax year, you may not use all your personal allowances and might be entitled to a tax rebate.
  4. Cheers,

    Thanks for the info
  5. msr

    msr LE

    Please can you supply the reference for this?

  6. TA pay is taxed at the basic rate. Whether or not you have to pay extra or get a rebate depends on how much your civvy job pays.

    If, for instance you don't have a civvy job then apply to HMRC for a rebate.

    If you're at the other end of the scale and pay high rate tax on your civvy salary then you'll need to pay extra tax (the diffeence between basic and high rate on your TA pay) , but as you'll be filling in a tax return anyway you should know about that already.

    If you're earning just under the limit for high rate tax in your civvy job then your TA pay can push you above the threshold. The onus is then on you to sort out a tax return and pay the extra. If you don't and HMRC fins out then you will not enjoy the experience, or the fine.
  7. Iv'e never filled out a tax return in my life! Work do all that for me (perks of the job) I am not on a 'great' wage but it is good enough (20,000). So I'm guessing that the tax on that would probs take quite a bit away from what I am actually earning from the TA?
  8. HMRC

    Mate, do some reading. If you're on £20k then work don't do your tax return; you're on PAYE and under the threshold to need one.

    The current limit is £34,800 of taxable income before 40% kicks in. You need to add your non-taxable income to that - for the sake of simplicity I'll assume that consists solely of your personal allowance of £6,035. Hence your salary needs to be £40, 835 before you pay 40% and need to stick a tax return in. So if your civvy job and TA pay are more than that you need to complete a tax retun yourself; if not, you don't.

    Also remember that the onus for getting this sorted is very much yours; not your employer, not the TA and certainly not what you read on ARRSE.
  9. If you're on PAYE from your regular job, and your other income is the TA then yes, basic rate tax of 20% (tax code BR) will be deducted from your second job, the TA. You fill in a form P46 for the TA and that will indicate to them to use the tax code BR. Check your first TA payslip for this code. Your regular job payslips will probably be 603L.

    Based on regular income of 20k and part time TA income that's all you need to do, in theory :)
  10. HMRC may now impose a D0 tax code rather than BR on TA earnings - as they have just done with me - which means that they have instructed MoD/Jpac to deduct take tax at 40% rather than at base rate. So anyone who is on 40% already and regularly does a tax return with TA employment on an additional sheet might have it treated that way rather through normal tax coding on main salary.

    However I shouldn't complain too much - I did manage to claim just over £2k against mess kit/blues a few years ago (I was expecting a letter saying "nice try matey" but got a cheque instead)
  11. Have they changed the NI you pay?
  12. No - NI still gets taken off at 11% once you earn the equivalent of £105/week - £110/week from April. If you already pay the max having earned equiv of £770/week (c£40k/pa) then you should only pay 1% - so you get a refund. (A letter gets sent out every August or so asking for confirmation of how much was taken off from various employments - work + main TA + any mobilised periods - each of those count as a separate pay/taxation entity) and then a refund lands either by chq or direct to bank.

    See: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015904?cids=Google_PPC&cre=Money