RAF Tax Rebate

Are you claiming your full travel tax relief?

Many RAF and other armed forces personnel are missing out because they think their full travel tax relief entitlement has already been included in their pay. Our MoD RAF Guide will help you figure out how much you are owed and how to claim your tax back.

RAF tax rebate eligibility

A misunderstanding between HMRC and the MoD has led to widespread misconceptions in the RAF about your tax relief entitlements. The focus of the confusion is the word ‘temporary’.

Under HMRC regulations, if any taxpayer is at a ‘temporary workplace’, then they can reclaim the tax on their travel expenses. According to HMRC, a ‘temporary workplace’ means somewhere you work for up to 24 months.

This is different to the MoD’s concept of a ‘permanent’ or ‘temporary’ posting. You can be permanently posted somewhere for less than 24 months, therefore HMRC’s travel tax relief rules become applicable.

The rules had previously been interpreted to mean that any ‘permanent’ posting was excluded.

The MoD has clarified this in DIN ‘2015DIN01-005’, which confirms that:

• Armed forces personnel can claim tax relief on travel expenses, as well as continuing to receive their tax free HTD (home to duty) or GYH (get you home) payments.
• You can complete the claims process yourself.

How much is an RAF travel claim worth?

You can use our free MoD travel tax rebate calculator to work out a more specific estimate for your situation.

The Tax Office consider each case on its individual merits and weigh up a variety of different elements, like how much tax you have paid, your income and the distance you have travelled.

What am I actually claiming for?

If you use your own vehicle, you are paid HTD at a rate of 21p per mile, by the MoD. You continue to receive this and it stays tax free.

If you are obliged to work at a ‘temporary workplace’ for up to 24 months, you are entitled to claim 45p for the first 10,000 miles (25p per mile from then).

So, your travel tax rebate is for the difference between the two totals.

It is also possible to claim tax relief on travel by any form of public transport, as long as you have viable receipts.

If my posting is extended, does that nullify my claim?

As long as your Assignment Order shows that the intended time limit of your posting was for up to 24 months, you should still be able to claim for that period.

RAF employees criteria

We will help you work out if you are eligible to apply for tax relief during our initial conversation.

These are the basic elements that need to be in place:

• You have finished your Phase 1 training
• Your posting, in the UK or abroad, is no longer than 24 months
• You drive your own vehicle or use any method of public transport

Good to know… If you have never made a claim, all taxpayers are allowed to reclaim their overpaid tax for the last 4 tax years.

RAF tax rebate tips

HMRC may well need some evidence to support your tax relief claim. The documentation required is variable and is dependent on the details of your particular claim. All of these are accessible, permissible sources of evidence:

• Receipts – for journeys made on public transport.
• P60, P45 – particularly for backdated claims. Get in touch with JPAC (0141 224 3600) or go on the Defence Gateway to get copies.
• Move and track documents.
• Assignment orders – these have the crucial dates, places and duration of your postings that confirm your claim. You can get copies, but you only have 60 days before they are wiped from the system.
• Payslips – issued monthly, these have necessary information about your salary, tax payments and any allowances that are already taken into consideration.

How do I claim an RAF tax rebate from HMRC?

There are two options to claim back a tax rebate from HMRC for your travel expenses:

• For a claim worth £2500 or over a self assessment tax return will typically be required. If you complete a tax return already for a different reason you should include your travel claim in the employment section of your return.
• If your travel claim is valued at below the £2500 threshold a P87 form is needed and then HMRC will generally ask you to post more information to them to evidence your claim.