Can I claim an Armed Forces Tax Rebate for Travel?

Members of the armed forces are eligible for additional mileage tax relief if they travel to temporary worplaces.

The tax relief available for travel costs is claimed back from HMRC and is in addition to your MOD duty mileage payments.

A successful military tax rebate claim is based on 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 25p 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.

MOD employees have the right to claim back mileage tax relief at their top rate of tax for the previous four tax years.

What is a ‘temporary workplace’ for MOD travel claims?

HMRC defines a temporary workplace as somewhere you are obliged to work for a maximum of 24 months.

Your posting can be deemed 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.

Types of qualifying journeys can include:

• Participating in courses.
• Moving between locations.
• Transferring for service.

All taxpayers are entitled to claim HMRC’s full mileage rates, 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.

Eligibility criteria for claiming an MOD travel tax refund

Armed force personnel 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 for 24 months or less.
• You travel by public transport.
• 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.

Our MoD force specific guides are available to all active service members in the British Army, Royal Navy, and Royal Air Force (RAF).

What paperwork must I provide to obtain my military tax refund?

To properly submit your Armed Forces tax claim, you’ll need to collect:

• All wage slips displaying military mileage allowance (MMA) payments.
• Deployment orders confirming your permanent station and temporary duty locations.
• Proof of purchase for meals and drinks during work-related travel.
• Tickets and receipts from public transportation use.
• Documentation for qualifying expenses such as uniform/mess dress cleaning bills if not using the standard allowance.

Tax tip:

Having comprehensive supporting evidence strengthens your application and minimises potential HMRC challenges or denials.

Save receipts for travel and mileage expenses where feasible. Bank records may also serve as valid proof for HMRC.

How to submit a travel tax rebate to HMRC

HMRC provides a few ways to claim your MOD tax rebate, with the specific method depending on your claim value and circumstances.

Online through HMRC’s online iForm: for claims under £2,500: The most straightforward method is logging into your personal tax account on the HMRC website.

Once logged in, navigate to the section for claiming tax relief for job expenses. You’ll need to provide comprehensive details about your work-related expenses and have supporting documentation ready.

The online system will guide you through each step of the process, making it relatively simple to complete your claim.

By post using form P87: For claims valued under £2,500, you can complete form P87 which is available for download from the HMRC website.

The form requires detailed information about your expenses and employment. Once completed, send it along with all relevant supporting documentation to HMRC at the address clearly specified on the form.

Through Self-Assessment: If you already submit an annual self-assessment tax return, or if your claim amount exceeds £2,500, you should incorporate your MOD tax rebate claim within the employment section of your tax return.

This method is particularly suitable for higher-value claims and those with more complex tax affairs.

While HMRC doesn’t initially request evidence when processing a self-assessment tax return, it’s crucial to maintain comprehensive records of all expenses and supporting documentation.

HMRC may request this evidence during subsequent checks or investigations after processing your return, so keep all relevant paperwork safely filed.

Are there any tax-exempt allowances for military personnel?

Yes, certain allowances for armed forces personnel are exempt from tax and national insurance contributions through specific agreements between HMRC and the Ministry of Defence.

These include:

• Operational Allowance for those serving in specified operational locations.
• Local Overseas Allowance (LOA) for additional costs of serving abroad.
• Get You Home (GYH) allowances for travel to permanent residences.
• Longer Separation Allowance (LSA) for those separated from their families.
• Some accommodation allowances.

It’s important to understand which allowances are already tax-exempt to avoid claiming tax relief on expenses that are already tax-free.

The tax status of allowances can change, so it’s advisable to check current HMRC guidance or consult with a tax specialist familiar with military allowances.

These exemptions are separate from tax rebates for out-of-pocket expenses, which you may still be eligible to claim.

Armed forces guide to tax refunds

To find out more you can use our free tax guide for military personnel covering tax relief on MOD uniforms and other allowable job expenses..

It walks you through the claims process step-by-step, helping you understand your full tax rebate entitlements as a member of the armed forces.

We explain common pitfalls to avoid, required documentation, submission deadlines and how to maximise your refund amount.

HMRC also provides a specific guide to expenses and allowances for service personnel which comprehensively outlines various scenarios, entitlements and claims processes for members of the armed forces in extensive detail.