Use our free MoD Tax Refund calculator to see how much you could claim for mileage costs.
How do I use the MOD calculator?
You input your total annual mileage and choose which rate of tax you currently pay (20 or 40%). The calculator then gives you an estimated figure of what your MOD tax refund claim could be worth.
It uses an equation based on HMRC’s AMAP mileage rates, which currently are:
- 45p per mile for the first 10,000 miles
- 25p per mile after the first 10,000 miles
But I already get some mileage back through the MoD…
Yes, many MoD employees to receive ‘home to duty’ or ‘get you home’ payments for travel from your home to your workplace. The calculator does not include these payments in its equation, but we would simply deduct this amount you have already received before submitting your claim to make up the difference.
When does this mileage rule apply?
The mileage rules apply to people who are working at a temporary workplace, as defined by HMRC. This is where a lot of initial confusion arose with MOD employees and their eligibility. A military ‘temporary posting’ is not necessarily the same as an HMRC temporary workplace. For tax relief purposes, HMRC’s definition is the only one that matters.
In HMRC’s terms, a temporary workplace means a different work location that you are required to be in for no more than 24 months. This term is measured from what is set out at the beginning of your time there. If this gets extended, you can still claim for the initial 24 months because that was the initially intended period of time.
So you could have permanent posting for 12 months and be able to claim your additional mileage because this is a temporary workplace to HMRC.
How do I claim an MoD Tax Refund?
You will need some paperwork as evidence of your claim like posting orders, move and track documents and payslips. We’re not going to lie, it is a fiddly, annoying process. But essentially this is tax that you have overpaid and we think it should be back in your pocket. You can backdate your claim for four years, which can make for a substantial cheque at the end of your initial claim. Check out your own figures on the calculator, then get in touch and we’ll sort the rest out for you.
