Tax on TA pay

Discussion in 'Army Pay, Claims & JPA' started by Cymru_am_Byth, Jul 14, 2006.

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. How do you stop tax being taken out at source? I'm student so I don't have any other employment, and so I'm earning less than the minimum taxable amount.

    I had part time jobs before I went to university, and no tax was deducted from my salary then, so how do you stop the army from doing it?
  2. jmj

    jmj Old-Salt

    Take a look at the Student section of the Inland Rev site.

    That should answer your queries


  3. I think you'll find that the "default" assumption for TA personnel is that you're being paid somewhere else, so the Army tax you at the standard rate (22%) on everything, unless you tell them otherwise.

    Best bet is to talk to your unit pay clerk and ask them to sort it out.

    You may need to phone your tax office too to tell them. Your tax office for Army purposes is one of the PD ones, not the one in the high street.

    Bear in mind that TA money is still income (admittedly not much!) and as such you are liable to tax if you earn more than your basic allowance from all sources, including any other paid work and interest on savings and investments (ha Ha!)

    HMRC website has tax rates on - HMRC tax codes - and lots of other information if you're having trouble sleeping any time..

    I'm not an expert, but hopefully there are others on here who are, and who can give you the Mil take on the above.

    Oh and by the way, it's not much comfort right now, but if you are paying too much tax (and National Insurance sometimes) you can always get it all back at the end of the financial year (5th April) by completing a tax return. Best way is to sort it all now though, if you can, and don't forget to tell them if your circumstances change.

  4. Go to your unit pay/admin office and ask for a P38D. This is the version of the P38 that a student needs to fill out to stop paying tax. Any problems getting one pm me and I'll dig one out for you.
  5. Sadly there isn't a mechanism for gettingt the Army to tax your TA pay at 40%. As a higher rate taxpayer I am only taxed by the TA at 22% and then after sending in my tax return have to send in (really rather large) cheques to cover the difference. Why the MOD and IR can't sit down and change the prevelant tax legislation I have no idea - I have asked my unit and Upavon.

    Frustrated of Suffolk