Tax on MMA

#1
Just a quick one. I've just been filling in a claim form, not military but MoD, which has been sent out as an Excel Spread sheet. Down at the bottom is a box to enter your tax rate.

My understanding has always been that MMA is tax free on the basis that it is an expense and you've already paid tax on the money you used to pay for the fuel. The tax rate box on the form is below all of the claim and so deducts from the MMA as well as the rest.

Is this right or not?

Thanks.
 
#2
It sounds as though you are trying to claim civi ODR instead of PTR, ODR and equivalents do have a tax implication above a certain annual mileage rate.

The opposite is also true if you claim military PTR you can get a tax allowance to top it up to 40p per mile if you claim on your tax form.
 
#3
This is just a one off - about 500 miles for the round trip. It is effectively a civilian claim, but from an MoD department.
 

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