40% tax, bounty & Tax Return

Discussion in 'Royal Naval Reserve (RNR)' started by SO2Seaman, Feb 20, 2009.

Welcome to the Navy Net aka Rum Ration

The UK's largest and busiest UNofficial RN website.

The heart of the site is the forum area, including:

  1. A question for those in the RNR who are 40% tax payers and file a Self Assessment Tax Return.
    When the Tax Return asks for the figures from your P60 (both pay and tax paid) does the pay figure include the TAX FREE BOUNTY? and if it does, how do I go about claiming 40% back for the last 6 year's bounty - As I have just realised that I think the Self Assessment Tax Return has automatically taxed my bounty in its caluclations.


  2. Why dont you ring up HMRC and ask them. That way you will get an accurate answer and stop taking up space on this blog with inappropriate rubbish.
  3. I just gave everything to my accountant and she arranged it for me, including the tax rebate

    Sometimes it's easier to pass all of this along to the professionals, otherwise you end up arguing down the phone with JPAC and then HMRC..
  4. A bit harsh CTF - it certainly isn't inappropriate rubbish to SO2Seaman - who rattled your cage today then?
  5. The Bounty is not income as defined in the Tax Rules and should not appear anywhere on your Tax Return. You will benefit from the services of an accountant if you have shown the Bounty as earnings on previous years' returns and want to claim the tax back. If memory serves, you have 5 years to claim back overpaid tax. Best of luck.

    Also, you are almost certainly overpaying NI contributions if you are a 40% taxpayer as these are capped but deducted at source by JPA. The overpayments unit at Newcastle should automatically get in touch but it may be worth contacting them.
  6. I don't think bounty is on your P60, so won't be incorporated into your tax for that reason.

  7. Like you just did......what a knob
  8. A while since I was in the RNR, but Bounty never appeared in the P60, it's tax free as you say and P60 only includes taxable pay. But as others have said the best thing would be to ask your tax office - they are usually very helpful with queries

    Aren't you a bit adrift on the deadline for your Self Assessment Tax Return? :)
  9. Likewise!!!
  10. FlagWagger

    FlagWagger Book Reviewer

    RIng up the HMRC? Two good reasons why you shouldn't use this route:
    1. 0845 number only which, while it may be charged at local rates, is not recognised as such from overseas, calling cards, or other discouinted rate programmes (I have a $10 calling card that woiuld give me 32 minutes on the phone to HMRC but over 3000 minutes to a geographical number!).
    2. The call centre ssyetm means that you spend a significant amount of time getting through to someone who can actually help you - in my experience at least 2 transfers sometimes more. This year alone I've spent more than 5 hours on the phone to HMRC trying to resolve a tax return with zero taxable income on it.

    Back to the original question - in my 20+ years in the RNR, Bounty did not appear on the P60, only taxable income.
  11. thanks v much for your comments, all bar 1, were useful.
    I have been told by JPA Centre that the bounty is included in the total income figure of the P60, but the tax paid figure reflects the fact that the £1500 bounty is not taxed.
    The tax office said that the self assessment will NOT take this into account, and are sending me form (or something) to claim back the last 5 years of 40% of £1500 per year- mmm nice!
    I will post a new blog as soon as it is complete, as, despite what some might say, this may well be appropriate for others who may be in the same boat - no fees are required from anyone else who makes a similar saving!


  12. try www.saynoto0870.com and u can search for a local rate number which u can use in calling cards etc.
  13. FlagWagger

    FlagWagger Book Reviewer

  14. So what is an appropriate post in your rather impertinent opinion?
  15. Possibly another regular annoyed by constantly being reminded of the benefits available to reservists yet not to regulars?
  16. Purple_twiglet

    Purple_twiglet War Hero Moderator

    You mean a small annual payment that almost makes up for the fact that we don't get paid X factor and have no other perks or benefits or allowances?

    Nice try for a bite doc, but you'll need to do better than that!
  17. There aren't very many of them.

    And, in any case, he asked the question on the RNR forum...

  18. And they would be what exactly?

    Although I do think the question should have been asked of HMRC or an accountant.
  19. Well then, why don't we come over to the RN thread and discuss the sea duty pay.. the ability to actually get promoted.. Y'know, all the things that you regulars get.

  20. Why does it always have to degenerate into an RN vs RNR pissing competition?

    We don't have directly comparable benefits and allowances between the 2 "branches of the same Service" because we don't work in the same way (despite having the same end objective) - live with it!

    It is exactly the same wrt FAA, S/M and Surface - different benefits for different jobs so please all try to play nicely or I will be forced to send you to sit on the naughty stair!

Share This Page