Tax Break!!!

Discussion in 'Army Pay, Claims & JPA' started by doctordeath, Jan 2, 2005.

?
  1. Yes, we are overseas after all.

    92.0%
  2. No, It doesn't count.

    8.0%

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  1. Ok, I'm now a civvi and spend alot of my time running around the world. In April I will be claiming my tax back for my work overseas. So my question is what? if anything is stopping the chaps and chapesses in the sand pit from doing the same. I can understand why not in Germany and Brunei etc as they have soverign bases and offically the camp-barracks is British soil. But as an operational force in someone elses country. Aren't you entitled to foreign earnings tax?????????

    Cat amoungst pigeons!! :twisted:
     
  2. Come on chaps!!! some one higher up the food chain should be able to get some info on this one!!! and if not hit the Inland Revenue and see what there reaction is!!!
     
  3. If you are a member of HM forces then you pay UK tax regardless of your actual location. The taxman and the MoD are both well aware of this and you can find the details buried somewhere in the legislation and regulations.

    I'm not too sure which part of government can change their minds (Chancellor, Revenue or MoD) but until they do so things won't change.

    Of course, if you're a civilian working abroad things are totally different - meet the taxmans requirements for days out of the country in a particular period and no tax for you.
     
  4. This is an old one Doc,

    I remember an extremely long and complicated reply to this question once in Soldier magazine. The MOD managed to do its sums and tell us we would actually be worse off if we didnt pay tax overseas :?

    Like you say, i understand paying tax on a Soverign Base Area (Although, i'm not sure thats true for Brunei) but income tax and the full rate of CILOCT is out of order when your not in a position to receive the benefits of that tax.

    Then again, they are never going to change it so its pointless argueing about it.

    Boney
     
  5. Okay - few years since I did tax, but the gist of what I remember is:

    If you aren't paying UK tax, international tax agreements mean you should be paying the tax of the country you are working in. Can you imagine the chaos of filling in a tax return for each different country you were posted to?

    If no double tax agreement exists between the UK and the relevant country, for example Iraq, under current legislation you (whether green or civvy) are meant to pay UK tax - you can then apply to the IR for a refund on any portion that has been taxed locally.

    If you are not UK tax resident (and the legislation at the moment specifically says that Crown Servants including the forces remain UK tax resident if on HMG business), but are still tax domiciled in the UK - ie regard the UK as where you will ultimately return to, if you bring the money back to the UK, or use it for a purchase in the UK (like a house) you will have to pay UK tax on any portion that has not been foreign taxed to UK rates. This does vary from country to country depending on the agreements.
     
  6. In reguards to all of the above:

    How is it when I am on tour outside the EU, some waster who wears the same rank and uniform as me, the EFI twats, can get tax relief but yet we as the people on the coal face cant?
     
  7. chimera

    chimera LE Moderator

    They may wear the same rank and uniform - but they are still EFI ****!!!
     
  8. EFI = EFI

    Not squaddie
     
  9. I am all too happy to pay my taxes but with regard to the CILOCT I am against it as the British Government dont give handouts to the Local German council to offset road sweepers, bin men and the like ?