MOD Tax Refund Rules

What are the MOD's rules for tax refunds?

We at DSR Tax Claims know how confusing the whole world of tax can be, especially if you work for the Ministry of Defence who have their own set of complex rules on top of HMRC’s regulations! Luckily for you, we are experts when it comes to all matters tax so we want to pass on our expertise to you, to help you feel less out of your depth when dealing with your own taxes. Why not check out our handy online calculator and see if you are entitled to a tax rebate or give our friendly team a call on 0330 122 9972 and let’s get that ball rolling for you.

So, what are the rules regarding MOD employees and tax rebates?

Basically, you are entitled to claim tax relief on your travel expenses on any temporary postings lasting less than 24 months even if these postings are outside the UK. You can claim these expenses whether you use your own vehicle or public transport to travel to the posting. And best of all, you can backdate any claim for up to four years. Call our expert team on 0330 122 9972 and see how we can help you.

Is it true that MOD personnel are not allowed to claim?

No, that is most definitely incorrect. Once upon a time it was believed that MOD employees couldn’t claim a refund on their travel expenses to temporary postings but that was due to a confusion between how the MOD described a temporary posting (basically, all postings were called permanent, no matter how long they lasted) and how HMRC would describe a work place of under 24 months.

Confusion also arose because MOD personnel are already allowed to claim HTD (Home to Duty) mileage tax exemption so some armed forces employees were worried that they would be claiming the same tax relief twice and would therefore run into trouble with HMRC and have to pay the money back. As it happens, MOD employees are entitled to tax relief on the difference between the HMRC mileage rate of 45p per mile and HTD, which is set at 21p per mile – so MOD employees can claim tax relief on the difference, which is 24p per mile.

If you have been at your base for longer than 24 months then unfortunately, this doesn’t apply under HMRC’s temporary workplace rules so you usually wouldn’t be able to claim. However, you might have a claim if you had expected that posting to be under 24 months so call us on 0330 122 9972 and we will take a look into it for you.

How about claiming during training?

It depends on the training. You can’t claim for any travel expenses during your phase 1 training. However, due to HMRC’s strict rules on expenses during training, you might be able to claim if your training was classed as being vital to your duties. If you think this applies to you, give our friendly team of experts a call on 0330 122 9972 and we will take a look into it for you.

Do Laundry Allowance Rules apply to MOD personnel?

Unfortunately, MOD personnel can’t claim this allowance and laundry costs have to come out of your personal allowance. However, if you have a receipt for laundry of “Mess Dress” in the previous four years then get in touch with our expert team on 0330 122 9972 and we will see if this is claimable.

DSR Tax Claims can also get MOD employees their maximum rebate fast, within 21 days of claim submission to HMRC in most cases – call our friendly team on 0330 122 9972 and let’s get your money back where it belongs, in your bank account!

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