Tax & NI Rebates for 2 back-to-back Tours

Discussion in 'Army Reserve' started by OldSnowy, Apr 16, 2006.

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  1. OldSnowy

    OldSnowy LE Moderator Book Reviewer

    Advice sought, please. I'm asking this question on behalf of a very nice Sigs Cpl, who is out here doing great work in Basra (but currently up-country with us). She is doing 2 x six-month Tours back-to-back, with a 3 week leave period in the middle.

    She was told at Chilwell that there is no way of getting any Tax or NI refunds, despite the fact she will be out of the country for well over a year. Is this true? Does anyone have any (sensible) advice to offer on this matter? I know that HM Forces are 'different', but then so are the TA, and if other ex-pat contract workers can do it......
  2. I think she is stuffed. Sorry, but as I understand it all armed forces are paid as if they were in the UK, for tax and NI.
  3. She's now a member of the Regular Army, and subject to the same pay and conditions.

    When she finishes her tour, she'll rejoin the TA.
  4. OldSnowy

    OldSnowy LE Moderator Book Reviewer

    I am hoping that there is someone on the site who can give an Accountants view (but free, of course!). I know that she is part of the Regualr Army (or as much as the TA ever are - and yes, I have been there), but I am sure that a clever Accountant woul be able to do something?
  5. I'm pretty sure whitehorse has it correct. I know this has been asked many times (Both on Arrse and in mobilisation briefings within my unit) and the answer has always been no (preceded by the presenter wiping the tears from his eyes and muttering about stamping on retention positive initiatives :lol: )
  6. I am one, and I'd still say she's out of luck, unless there's a cleverer ACCA person out there, well versed in the Dark Arts of personal taxation, who says otherwise?

    If there's a loophole, it would have been found long before now.

    She's on Regular Terms of Service. Even TA pay is paid subject to UK taxes, otherwise every time we disappear overseas on Exercise we'd be after claiming the pay as expats.
  7. Sorry to be the bearer of bad news (I am a director of a 'Big Four' company and have chatted to some colleagues). She is employed in the UK by a UK entity. People on this site know more than me about Army Terms and Conditions of Service, but from a tax perspective there is no escape.

    As stated above, if people could do it (and enough officers have friends in the City to advise them) it would be done by people in other theatres. You can never pick and choose with tax - as soon as you try taxmen squirm from the woodwork and nail you. While it would be great in Iraq (which does have local taxes) and not pay anything, as soon as you move to Germany, what then? You would have to pay German taxes. A posting abroad would become a tax nightmare. What of social security issues (pensions et al)?

    Of course B.Liar could do the decent thing and make all Military salaries tax free (and use the saving to force HMF to buy their own pensions, etc).

    You Cpl's only chance is to leave the Army and re-apply for her job as a civilian, but I guess this isn't one of those jobs on offer (and she might loose at the interview stage).

    PS Tell her to apply for a rebate anyway: allegedly there are some real muppets in the tax office and she might just get away with it! If not, then she has wasted 30 minutes on paperwork.