Army Tax Rebate: Claim What You’re Entitled To

If you serve in the British Army, you may be overlooking significant tax refunds available from HMRC.

Many military service members don’t realise they can request tax reimbursements for necessary work expenses, despite already receiving standard MOD allowances.

HMRC automatically provides Army personnel with a £100 annual uniform maintenance allowance without requiring any claims.

Additional tax benefits require active applications; such as claiming mileage to temporary work locations (offering 45p per mile versus MOD’s standard 25p rate).

The tax regulations apply to members of all corps, regiments and units of the Army.

Don’t let HMRC retain money that’s rightfully yours; check our guidance to ensure you claim all tax rebates you qualify for.

Army tax rebate eligibility

You are probably due a tax rebate on your travel expenses if:

• you are out of Phase 1 training.
• you are posted for 24 months or less, in the UK or abroad.
• you are on a training course lasting 24 months or less.
• you use public transport, including ferries and planes.
• you drive your own vehicle.

If your posting is extended, you can still potentially claim for the 24 months (or less) that was part of your initial assignment order.

What is a temporary workplace for travel expenses?

The concept of a temporary workplace often creates confusion.

According to temporary workplace HMRC, it usually refers to a location where one works for a duration of up to 24 months.

This differs from how the MoD defines a temporary posting. Consequently, numerous military personnel may not realise they can claim tax relief for travel expenses to and from a permanent posting lasting 24 months or less.

When working at a temporary workplace, you may be eligible to claim tax relief on travel costs in addition to your HTD or GYH allowances.

Can I make a claim if I already get HTD payments?

The MoD pays you HTD at 25p per mile and you are not taxed on this amount. But HMRC’s mileage allowance to a ‘temporary workplace’ is 45p per mile up to 10,000 miles (and 25p thereafter), so you are fully entitled to reclaim the difference.

You still receive your tax free HTD payments; they just become part of the overall calculation for working out your tax rebate submission.

How much is an Army tax rebate worth?

Every case is dealt with on a case by case basis by HMRC, which is why we provide an individualised service and why it’s impossible to guarantee exactly what you might gain.

Several factors come into play, like your earnings, tax paid and the number of allowable business miles you have travelled in any one tax year.

You can use our free MoD tax rebate calculator to work out an estimate based on your mileage.

What evidence do I need to claim an Army tax rebate?

You usually need some evidence to support your tax relief claim. This might include:

• Monthly payslips. This shows which allowances are already included in your pay and how much tax you have paid.
• Assignment orders; detailing where, when and for how long you were at a ‘temporary workplace’. Remember, these are automatically deleted from the system after 60 days.
• Receipts for journeys done by public transport.
• Financials, like P60s, P45s. You can get copies of yours through the Defence Gateway.
• Move and track documents.

Excellent news, you can backdate an initial tax relief claim for the last 4 tax years. So even if you are now ex-forces, you might be able to make a claim for that time period.

How do I claim my Army tax rebate?

The way in which you claim a tax rebate as a member of the Army depends on the value of your claim.

Understanding which method to use is essential for a successful claim.

• For Army tax rebate claims worth £2500 or more, you will typically need to submit a self assessment tax return to HMRC. This ensures larger claims are properly documented and processed through the appropriate channels.
• If your claim has a value of less than £2,500, a P87 should be sent to HMRC by post. Alternatively, you can use HMRC’s online claim form via .GOV. The online option often provides a quicker and more convenient way to submit your claim, with the added benefit of digital confirmation and tracking.