Navy Tax Rebate

As a Royal Navy service member, you could be missing out on thousands of pounds in unclaimed tax rebates.

Many Navy personnel are unaware that they’re entitled to claim back tax on essential work-related expenses, even when receiving standard MOD allowances.

HMRC permits a uniform washing allowance for Navy employees worth £80 per tax year which is given automatically without claiming.

Other tax reliefs exist which need you to make a claim for example claiming for travel expenses to temporary workplaces (at 45p per mile compared to the standard MOD rate of 25p),

HMRC’s regulations apply to every taxpayer, including members of Surface Fleet, Fleet Air Arm, Submarine Service, Royal Marines and Royal Fleet Auxiliary.

Don’t leave your hard-earned money in HMRC’s hands; explore our resources to ensure you receive every penny you’re entitled to.

What is a ‘temporary workplace’ for a Navy tax rebate?

The term temporary workplace can lead to some confusion.By temporary workplace HMRC usually means somewhere that you work for up to 24 months.

This is not the same as MoD’s definition of a temporary posting. As a result of this, many armed service personnel are unaware that they are allowed to reclaim tax relief on the cost of travel to and from a permanent posting, if it is for 24 months or less.

If you are attending a temporary place of work you should be entitled to claim tax relief on travel expenses alongside your HTD or GYH payments.

Navy tax rebate eligibility

You can submit a claim if you have completed Phase 1 Training and you have travelled from your home to a posting that is intended to be for 24 months or less.

This applies to public transport, including flights and ferry crossings, and using your own vehicle.

The same rules apply to postings abroad, as well as in the UK. As long as your assignment order shows that the posting is intended to be for no longer than 24 months, you should be entitled to the full travel tax relief amount.

Any extensions to the posting beyond the initial time limit do not affect your claim.

How much is a Navy tax rebate worth?

The get HTD (home to duty) payments are usually paid at a rate of 25p per mile.

If you have a temporary workplace, as defined by HMRC, then you are entitled to claim 45p per mile up to 10,000 miles and 25p from there onwards. You keep your tax free HTD money and claim the difference.

You can get an estimate based on your mileage by using our free MoD tax refund calculator.

Several factors are involved in working out your final figure, which is why HMRC consider each case individually.

Extra bonus! You can backdate your first tax relief claim for 4 tax years.

What paperwork do I need?

HMRC may well require evidence to back up your claim and they accept several types of armed service personnel documents, such as:

• Receipts – particularly necessary for public transport travel.
• Move and track docs.
• Payslips – these show essential information like how much tax you have paid and which allowances you already receive like MMA for travel.
• Assignment orders – the easiest way to prove when and where you were, and for how long.
• Other – P60s and P45s are really helpful for backdated claims.

Don’t panic if you have no idea where your documents might be or if you keep electronic records and shred the paper copies.

You have 60 days to get a copy of an assignment order and JPAC can usually help with other missing documents.

How do I claim my Navy tax rebate?

The process to claim your tax rebate as a member of the Navy depends on the how much you are claiming back.

• For a Navy tax rebate claim worth £2500 or more you will typically need to submit a self assessment tax return to HMRC.
• If your claim has a value of less than £2,500 a P87 should be sent to HMRC by post or you can use HMRC’s online claim form via .GOV.