RAF Tax Rebate

If you serve in the Royal Airforce, you may be overlooking significant tax rebates available from HMRC.

Some service members are unaware of the substantial reimbursements they could claim, potentially leaving hundreds of pounds unclaimed each year.

HMRC automatically provides RAF personnel with a £100 annual uniform maintenance allowance without requiring any claims. This covers basic upkeep of uniforms, including cleaning and minor repairs, but additional costs may be eligible for further claims.

Additional tax reliefs require active applications; such as claiming mileage to temporary work locations (offering 45p per mile versus MOD’s standard 25p rate). This difference can amount to significant savings over the tax year.

The tax regulations apply to members of all RAF groups, regardless of rank or specialisation.

Don’t let HMRC retain money that’s rightfully yours; check our MoD guidance to ensure you claim all tax rebates you qualify for. Taking action now could result in substantial tax savings and backdated claims.

RAF tax rebate eligibility

You may be eligible for a tax rebate on travel expenses if:

• you have completed Phase 1 training.
• you have a UK or overseas posting of 24 months or less.
• you are attending a training course of 24 months or less.
• you use public transport, including ferries and planes.
• you use your own vehicle.

For extended postings, you can still potentially claim for the initial 24-month period.

What is classed as a temporary workplace for RAF employees?

A temporary workplace, as defined by HMRC, normally means working at a location for up to 24 months.

Military personnel can claim tax relief on travel expenses to temporary postings, alongside HTD or GYH allowances.

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?

The process of claiming a tax rebate as an RAF service member varies according to the amount you’re claiming.

It’s crucial to understand which approach is appropriate for your specific situation.

• For RAF tax rebate applications exceeding £2500, you’ll generally need to submit a self assessment tax return to HMRC. This procedure ensures that substantial claims are adequately documented.
• If your claim amounts to less than £2,500, you should submit a P87 to HMRC through postal service.
• You may also utilise HMRC’s online claim portal via .GOV. The digital route typically offers a more efficient and accessible method for submission, including the convenience of electronic confirmation and monitoring.