MOD Tax Rebate Guide

Work for the Ministry of Defence? You could be due a tax rebate.

If you work for the MOD you can claim a tax rebate for some of your travel expenses for the last four tax years. You are still eligible to claim even if you are paid GYH (get you home pay) or HTD (home to duty) payments from the MOD.

Our free MOD Tax Guide lays out the ‘whats’ and ‘hows’ of making a tax rebate claim.

What can I claim an MOD tax rebate for?

You can claim for using your own car or public transport from your home to base or for training purposes. This includes a base overseas. To start with you must have already completed your phase 1 training.

You can be eligible to claim an MOD refund if:

You are located at a base for 24 months or less

Or

Your assignment order states that you are intended to be located at your base for 24 months or less (even if you stay for longer you can claim for the first 24 months).

Or

You use your own car to travel for training purposes (even if you are paid duty mileage a claim is usually still possible).

What is an MOD tax refund worth?

How much you can reclaim depends on your own set of circumstances.

The most important factors effecting how much you can claim are:

• The number of allowable business miles you have driven.
• Your earnings and the tax you have already paid.

You can use our MOD tax refund calculator to help you work out how much your claim could be worth. Our MOD calculator is free to use and can help you work out what you are owed before making a claim.

What paperwork do I need to make an MOD tax rebate?

It depends on your own circumstances but some or all of the below is considered acceptable evidence by HMRC:

• If you can a copy of your assignment order stating the expected time spent at your base.
• Payslips – your JPAC enquiry centre can help if you can’t get them online. These are important because they include any duty mileage paid by the MOD.
• Move and track documents are helpful too.

I have left the MOD can I claim a tax rebate?

The fact you are no longer employed by the MOD does not effect your eligibility to make a claim as long as you have left within the last four tax years.

Can I claim for an MOD uniform allowance?

An agreement has been made between the MOD and HMRC to allow for tax relief to be given for washing your own uniform. The tax relief should automatically be given meaning you don’t have to make a claim.

How do I claim my MOD tax rebate?

HMRC need you to submit your MOD refund claim in one of two ways:

• The tax office might ask for a Self Assessment tax return to be completed. This all depends on if the value of your claim is worth £2500 or more in any one tax year.

It is common for a claim for MOD travel to result in a claim being worth £2500 or more so be prepared to complete a tax return to HMRC either online or by post.

For people who complete a tax return for a different reason you should include your MOD tax rebate claim in the employment section of your tax return.

• If your claim is for a value of less than £2500 a form P87 should be submitted for each tax year of your claim. HMRC will normally ask in writing for further evidence to back up your claim after they have received and processed your P87.