↑ Return to Preparing for Departure

Advance of Pay on return to UK

Regarding advances of pay and unrecovered overpayment debt as counting towards the £10K beneficial loan threshold, this is being rectified for tax year (TY) 16/17 onwards.  Therefore those who might owe MOD a lot of money due to (1) recent overpayments (e.g. RAF AIP or AAC RRP(F)) and/or (2) having been posted overseas and taken the full 4-month advance on offer, have a brief opportunity to avoid the tax implications in TY 16/17 by repaying their MOD debts down below the £10K limit in March, before the new tax period begins on 6 Apr 16.

 

For more information please log into DII and use the following link:

DIN 2016DIN01-019: Taxation of payments deemed to be Beneficial Loans