Tax on Telic

Discussion in 'Army Reserve' started by danielsan, Jun 20, 2006.

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  1. I am a student currently in TA, despite being my main income my TA tax code is BR ( Basic Rate ) and have justed volunteered for compulsory mobilisation on Telic 9.

    1. How can my tax code for normal earnings be corrected - no-one in my unit seems to know and no-one can tell them?

    2. Will I automatically get an appropriate tax code once mobilisation begins?

    Any help would be most - um - helpful.
  2. Don't know about Telic tax, but seeing as you are actively avoiding employment, you should have no trouble claiming back what the government take off you.
  3. You can claim it back, contact Center one tax office in East Kilbride Jockland with your national insurance number and they will put you through to your assigned tax officer.
  4. Actively avoiding employment - you're having a laugh arent you :D ! Last year I fitted in Six months full time study, six months placement on an NHS ward (unpaid) and 115 days with my unit, plus part-time work as an agency LGV driver and even to my shame 2 weeks @ McDonalds over Christmas.
    Since deciding to do TA only I have come up against this hurdle of amending my tax code. Tax office say fill in P46. RHQ say - not appropriate, and dont have any anyway.
  5. With that kind of employment background, I would be keeping all my payslips, completing an annual tax return and waiting for the rebate to roll in! The basic rate of tax imposed on you probably means that you are overpaying anyway - and the Revenue won't tell you because it's not their job....

    If you have your last payslip, work out what percentage of the gross pay was paid out on income tax and tell us here!

  6. On P60 it was 21.9% for PAYE with 0 tax free allowance - I spoke to a cleverer lady @ tax office who has married up my PAYE reference and my NI no and should be able to give me a new tax code in about ten days. Unfortunately I do not have the ability to keep all my payslips so that should be an expensive lesson learned - do you think I'll learn it!?
  7. ^ Don't worry the Tax office knows how much you've earned , if your entitled to a refund of tax then you will get it. (when you get it is a whole different question).
  8. You are paying the basic rate of tax at 22% on those earnings and you are, therefore, overpaying income tax! I strongly recommend that you keep all your payslips because if you don't keep an eye on what is going on, the Revenue will stiff you!

  9. Here is my professional option on this matter (I am an accountant). First of all TA pay and pay on mobilisation is 2 differeent issue.

    TA pay will always be on BR as it is count as secondary income, unless you are a higher rate tax payer (i.e. 40%) then you will have to apply to TA to have it change and get your TA pay deduced at 40%.

    When you are mobilisated you main employer will be the British Army and your normal Tax code will be use. You will fill a different Tax form when you are at Chilwell and they will sort this out for you.

    I strongly suggest you file annual Tax return on it unless your tax office told you not to. As you are very likely to get refund for the tax deduced on your TA pay and after Telic you may have to paid extra tax as a lot of us did. And it is an offence in UK for not declare your income to the Revenue annually unless they told you otherwise.
  10. Thanks for your input chaps! :D
  11. Go speak to your PSAO and ask for a P38. (Haven't had to use the form for a couple of years so I think that's the number - if in doubt, refer to it as the Students Tax Form.) Chances are he'll not have heard of it, or have one in the Admin Office as most units have so few students.

    If you get any problems, contact your local tax office and ask them for a form. Basically the form is sent off to explain that you're a student and that you have no other main income against which to offset your tax allowance.

    TA pay assumes for the most part that you're a Tax Payer and that your main income gives you your tax allowances, as well as all your National Income ones, so the default for tax is Basic Rate. (BR).

    To get the tax back that you've already paid, write a letter to your tax office explaining your circumstances and they'll send you a refund for the previous year. Use your P60 for evidence. I've done this with a couple of our blokes so I know it works. Alternatively ask your AGC person to write on your behalf.

    Something to consider however, is how much TA time you're putting in, and whether it's simpler to pay the tax and ask for a refund later. It can be quite a useful windfall later.

    When it comes to mobilisation, you're employed by the British Army, and no longer a student. Tax and National Insurance then apply.
  12. HMRC

    See above link for repayment forms. I recently reclaimed some tax using the R40 form. Note that I've been told to contact a different part of the organisation to get my excess NI back, too. (Talk about joined up Govt!)

    Might be wise to go to a tax office in person, as previously advised, if you have time, as this might help to expedite matters.

    I recently received a tax refund.

    The interest was a bit rubbish, to say the least, so I checked up on what they'd done.

    I now know that under the relevant legislation, HMRC pay interest from 31 January AFTER the tax year in which you made the overpayment.

    For example, if you paid too much tax in 2004/05, then interest starts from 31 Jan 2006.

    Accordingly, for 04/05, the Govt had an interst free loan from me for at least 10 months. (As the overpayment started from the end of April 2004, when I first paid tax that year, you could argue that some of my overpayment was an interest free loan for 22 months.)

    My overpayments were in the context of PAYE work - not sure if it'd be different for the self employed.

    Anyhow, just thought I'd get the message out - interest starts late, and then is not that great, so if you've overpaid, get that claim in quickly!