I’m paid duty mileage, can I claim tax back?
Yes, you are eligible for additional mileage tax relief, as well as your MOD duty mileage payments. You are claiming the difference between your home-to-duty (or get-you-home) payments and the amount allowable under HMRC’s work expenses regulations for travel to a ‘temporary workplace’.
In other words…
- You receive 21p per mile, tax free home-to-duty.
- HMRC’s mileage allowance for taxpayers travelling to a temporary workplace is 45p per mile for the first 10,000 miles (25p thereafter).
- You keep getting your HTD tax free and claim for the difference between the two amounts.
What is a DIN?
DIN stands for ‘Defence Instructions and Notices’ and is part of the internal communication structure of the armed forces. Each document issued has a DIN reference number.
What is a ‘temporary workplace’?
HMRC defines this as somewhere you are obliged to work for a maximum of 24 months. This is where a lot of the initial confusion over MoD claims started; rectified by DIN 2015DIN01-005. Your permanent posting is also a temporary workplace if your posting order is for no longer than 24 months. Even if your posting is extended, if the initial order was for 24 months or less, then you can still submit a claim.
All taxpayers are entitled to claim this full amount, even when they are paid partial mileage by their employers. HMRC’s regulations apply to all UK taxpayers and therefore take precedence over the MoD’s definitions.
What are the eligibility criteria for claiming duty mileage?
You can claim duty mileage when you meet the following criteria:
- You have completed Phase 1 Basic Training
- You are on a training course that lasts no longer than 24 months
- You have a posting order, to the UK or abroad, for 24 months or less
- You travel by public transport, including plane or ferry
- You use your own vehicle to travel to your post
Each case is considered individually, but it is worth looking into if you meet any of these criteria.
Your first claim for a travel tax rebate can be backdated for four years so, even if you’ve now left the services, you can still make a claim.
What paperwork do I need?
You will need some supporting documents to evidence your submission; such as move and track docs, posting orders and monthly pay statements.
How can Tax Rebate Services help me with my mileage claim?
We’ve been working with MOD staff for over 15 years and have found there to be three main reasons why military personnel decided to use our service, rather than embark on the process themselves.
- The hassle factor. Hundreds of pounds go unclaimed every year because tax relief is a tricky, fiddly process to unravel and people just cannot be bothered with the hassle. Our finely tuned process makes everything straightforward and stress free for our clients.
- Time. None of you want to waste any off-duty time with HMRC, either online or in phone queues. You don’t have to learn how to translate tax regulations into plain English and figure out which ones apply to you; that’s what we do. We’ll also communicate with HMRC on your behalf and take care of all the paperwork.
- Financial Penalties. It is well-known that HMRC issues fines for mistakes made on forms, even genuine ones, and for missed deadlines. We ensure accuracy, total compliance with your tax liability and will never miss an official deadline.
It’s simply not fair that a daunting system means that our armed service personnel are missing out on reclaiming their own money. It costs you nothing to find out, with our popular ‘No rebate, No fee’ policy. Our tax experts are full qualified and professionally regulated, with a well-deserved reputation for customer service excellence. But don’t take our word for it; check out our independently verified reviews to see what our clients really think.
We include everything you are entitled to on one fully optimised, bespoke claim. All you have to do is complete the quick form below, or give our UK-based experts a call on 01228 520477, to get the ball rolling.
