MOD Tax Refund

Most work related expenses are covered by the MOD but it’s possible to make a claim for the cost of travel in many cases.

The tax office allows MOD staff to claim tax relief on the cost of travel from their home to what they class as a temporary workplace. The tax relief is available to armed forces personnel living both in and outside the UK.

How the MOD tax refund calculator works

The calculator works out how much you could be owed by using the AMAP mileage rates as given by HMRC:

• For the first 10,000 miles you are allowed to claim .45p per mile.
• For any miles after that you are allowed to claim .25p per mile.

The calculator does not take into consideration any mileage paid to you by the MOD like ‘get you home’ or ‘home to duty’ payments. You would normally need to deduct any mileage paid by the MOD before a claim is made to HMRC.

Do I qualify for an MOD tax rebate?

To qualify you need to travel to a temporary workplace. A temporary workplace is classed as a location which you visit for 24 months or less or be expected to be at that place for less than 24 months at the beginning of your posting.

If you pay for traveling to courses this can be claimed for as well, and this is in addition to any duty mileage paid by the MOD.

We can help you decide if you have a valid claim to ensure you don’t waste your time trying to claim for something you are not entitled to.

How far back can I claim?

You could be entitled to claim for the last four tax years. If you think you might be entitled to a refund you should act as soon as you can. Leaving it until another day could mean you miss out on what you are due back.

What do I need to claim?

To make a successful claim you will usually need:

• Your payslips ( you can get these from JPAC online )
• Assignment orders ( your careers manager can give you copies if you don’t have them )
• Move and track documents

How do I claim my MOD tax refund?

The way in which you submit your MOD tax refund claim to HMRC depends on the value of your claim.

• If your claim is valued at £2500 or more you should complete a self assessment tax return.
• For an MOD claim worth below £2500 a form P87 claim income tax relief for your employment expenses needs to be submitted.

The thresholds are for an individual tax year so if you are making a claim for more than one year be prepared to complete both forms depending on the value of your claim in each year.