MOD Tax Rebate Guide

Are you serving in the UK Armed Forces and paying for work-related expenses out of your own pocket? You could be entitled to claim MOD tax rebates worth hundreds or even thousands of pounds.

Military tax refunds are available to active service members in the Royal Navy, Army, and RAF who incur costs for essential work-related travel, uniforms, equipment, and temporary posting expenses.

The Ministry of Defence tax rebate system is designed to provide financial relief for military personnel who shoulder these additional costs as part of their service.

With claims possible for up to four years retrospectively, many service members are unaware of the substantial sums they’re entitled to reclaim through HMRC.

Whether you’re regularly traveling between bases, purchasing equipment, or maintaining uniforms, these expenses may qualify for tax relief under current regulations.

Our tax rebate guide for Armed Forces personnel can help you navigate the process of claiming military tax refunds, ensuring you receive every penny you’re entitled to while avoiding common pitfalls that can delay or reduce your claim.

What exactly are MOD tax rebates?

MOD tax rebates (Ministry of Defence tax rebates) are refunds available to UK Armed Forces personnel who incur work-related expenses that haven’t been fully reimbursed by the MOD.

These military tax refunds allow service members to claim back tax relief on eligible expenses through HMRC.

The system is designed to ensure fair compensation for the additional costs associated with military service, including travel between bases, uniform maintenance, equipment purchases, and expenses related to temporary postings.

The rebates are calculated based on your tax rate and the total eligible expenses, potentially resulting in significant refunds depending on your circumstances and spending.

HMRC has a specific guide to expenses and allowances for service personnel which explains most scenarios in detail.

Who is eligible to claim MOD tax rebates?

You’re eligible to claim MOD tax rebates if you’re an active service member in the Royal Navy, Army, or Royal Air Force who has paid for work-related expenses that weren’t fully reimbursed.

Key eligibility criteria includes:

• Being on active service during the period you’re claiming for.
• Having incurred necessary work-related expenses.
• Not having received full reimbursement from the MOD for these expenses.
• For travel claims, your workplace must be considered temporary (generally less than 24 months).
• For travel claims you must have completed phase one basic training.
• Being a UK taxpayer through PAYE.

Both officers and other ranks can claim, regardless of whether you live on or off base.

Even if you’ve left the service, you can still claim for expenses incurred during your time in the Armed Forces, provided you’re within the four-year retrospective claim period.

What expenses can I claim for in my MOD tax rebate?

You can claim for various work-related expenses in your military tax refund, including:

• Travel costs between different bases or workplaces (not including regular commuting to your permanent workplace).
• Accommodation and subsistence when working away from your permanent base.
• Cleaning and replacement of specialised uniforms.
• Professional subscriptions and memberships required for your role that are approved for tax relief by HMRC.
• Costs for equipment and tools necessary for your duties.
• Professional development and training costs not covered by the MOD.

Each expense category has specific rules regarding what’s allowable and how it’s calculated.

Am I eligible for an MOD tax rebate for using my own car?

To be eligible you must have completed your phase 1 basic training and travelled to a temporary place of work.

When using your personal vehicle for military business travel, the armed forces will normally compensate you using the motor mileage allowance (MMA) rate.

The MMA rate falls below HMRC’s approved mileage allowance payment (AMAP) rates of .45p per mile for the first 10,000 miles and .25p thereafter.

If you are entitled you claim tax relief from HMRC for the gap between the AMAP and MMA rates.

If you are not reimbursed by the MOD for travel and you are attending a temporary workplace a claim for the full AMAP rates is still possible.

HMRC will only allow a mileage tax rebate to be claimed when the travel is to a temporary workplace according to their criteria.

If you use public transport instead of car tax relief can be available in the same way if the armed forces are not covering or reimbursing these expenses in full.

Common scenarios that can qualify for mileage deductions:

• Attending training courses: Travel to training sessions that occur away from your standard base of operation.
• Travel between bases: If you receive a temporary assignment to a different base and need to commute there from your regular workplace.
• Relocating for duty: When your service requires you to relocate, the journey from your previous to your new posting is claimable.

A workplace is generally deemed temporary by HMRC if it lasts for less than 24 months and is a “workplace that an employee attends for the purpose of performing a task of limited duration or for some other temporary purpose”

Important:

Being paid HDT and GYH(T) MMA payments does not automatically classify your workplace as ‘temporary’ for HMRC mileage tax relief purposes.

Due to the unique nature of armed forces service, both HDT and GYH(T) MMA payments are consistently tax-exempt; employees in other sectors would not normally be eligible for tax-free payments or reimbursements for comparable home-to-work travel.

If you are unsure whether your claim meets temporary workplace criteria it is advisable to verify your claim’s validity through the MOD intranet or with HMRC directly before submitting it.

You can use our free MOD mileage tax refund calculator to estimate the value of your claim.

Can I claim for an MOD uniform refund?

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 by JPAC each time you are paid meaning you don’t have to make a claim.

Instead of using HMRC’s standard you can opt to submit a claim for your actual laundry costs for mess dress and uniform.

To do this you’ll need to provide HMRC documentation to show what you have spent.

What documentation do I need to claim my military tax refund?

To successfully claim an Armed Forces tax rebate, you’ll need to gather:

• All payslips showing military mileage allowance payments (MMA).
• Assignment orders to prove your base location and any temporary postings.
• Receipts for food and refreshments (aka subsistence) costs whilst on business travel.
• Receipts for public transport costs.
• Receipts for eligible expenses where possible like cleaning receipts for uniform/mess dress if you aren’t claiming the flat rate expense.

TIP:

Keep receipts for mileage and travel costs where possible. Bank statements can also be used as evidence.

Having as much supporting documentation as possible strengthens your claim and reduces the risk of HMRC queries or rejections.

How far back can I claim MOD tax rebates?

You can claim MOD tax rebates for up to four years retrospectively from the current tax year.

This means if you’re making a claim in the 2025/26 tax year, you could potentially claim back to the 2021/22 tax year.

This four-year window is set by HMRC’s regulations for all tax refunds, not just military ones.

If you’ve never claimed before, you could be entitled to a substantial sum covering multiple years of expenses.

It’s worth noting that the deadline for each tax year is the 5th April, so ensure you submit claims before this date to avoid losing a year of potential rebates.

How do I actually claim my MOD tax rebate?

HMRC let you submit online through your Government Gateway account or by post depending on the value of your claim.

Online through HMRC’s Government Gateway: Log into your personal tax account and select the option to claim tax relief for job expenses. You’ll need to provide details of your expenses and supporting evidence.

By post using form P87: Download and complete form P87 from the HMRC website for claims under £2,500. Send the completed form along with supporting documentation to the address specified on the form.

Through Self-Assessment: If you already complete a self-assessment tax return, or if your claim exceeds £2,500, you should include your claim in the employment section of your annual tax return.

Evidence won’t be requested when submitting a tax return but you must be able to provide it if HMRC asks after they have processed the return.

Timescales for MOD tax refund claims

The process typically takes around 12 weeks from submission to receiving payment, though this can vary depending on HMRC’s current processing times and whether they need additional information.

HMRC will acknowledge receipt of your claim online or by letter through the post.

You can check your tax rebate claim status online which can save you time in comparison to using the normally busy HMRC helpline.

Your claim will be delayed if HMRC need to ask you for further information or clarification of what they have received.

Once approved you should receive a P800 tax calculation letter (which you should check for accuracy) with the same information updated in your personal tax account.

Payment of your rebate will be made directly into your bank account as per your claim form or sent as a cheque.

How much could my MOD tax rebate be worth?

The value of your MOD tax rebate depends on several factors:

• Your tax rate (basic rate at 20% or higher rate at 40% or 45%).
• The total amount of eligible expenses you’ve incurred.
• The number of tax years you’re claiming for.
• Whether you’re claiming flat-rate allowances or actual expenses.

As a general example, if you’re a basic rate taxpayer who has spent £1,000 on eligible expenses in a tax year, you could potentially receive £200 back (20% of £1,000). For higher rate taxpayers, this would be £400 (40% of £1,000).

For travel expenses, claims can be particularly valuable. If you’ve been traveling to a temporary workplace regularly, you might claim mileage at HMRC’s approved rates (currently 45p per mile for the first 10,000 miles, then 25p per mile thereafter).

For someone with a claim worth £2,000 in expenses a tax rebate worth between £400-£800 could be due, depending on your tax rate.

What are the common reasons MOD tax rebate claims get rejected?

MOD tax rebate claims may be rejected for several reasons:

• Incomplete documentation: Missing payslips, P60s, or evidence of expenses.
• Claiming for ineligible expenses: Such as regular commuting to a permanent workplace.
• Duplicate claims: Attempting to claim for expenses already reimbursed by the MOD.
• Timeline violations: Claiming for expenses incurred at a workplace where you’ve been based. for more than 24 months (as this becomes your permanent workplace).
• Missing deadlines: Trying to claim for tax years outside the four-year window.
• Incorrect calculations: Errors in working out the tax relief due.

To avoid rejection, ensure you understand the eligibility criteria fully, maintain detailed records, check that expenses haven’t been reimbursed elsewhere, and verify all calculations.

If your claim is rejected, HMRC will typically explain why, allowing you to address the issues and resubmit if appropriate.

Our MoD force specific tax rebate guides are here for all service members across the Royal Air Force (RAF), British Army, and Royal Navy branches of the military.