Soldiers in war zones to be exempt from paying income tax

#2
Re: Soldiers in war zones to be exempt from paying income ta

What a great idea although I prefer the flat tax ie 5% for all essential services including police. In the case of the UK army the 5% tax to cover the NI. These people deserve consideration and this would improve moral and make service life more attractive maybe,
8)
 
#3
Re: Soldiers in war zones to be exempt from paying income ta

Always_a_Civvy said:
Armed forces pay - soldiers in war zones to be exempted from income tax. This will of course mean that the anomolous situation will arise whereby the junior ranks pay 11% National Insurance whilst those in the higher tax band pay 1% NI! A case of discriminating against the lowest paid ranks still! An improvement nevertheless.

http://www.timesonline.co.uk/newspaper/0,,171-2385487,00.html
There is another option being considered - A pay rise for the lower ranks. Could even being a combination of of both. Tax relief and operational bonus.
 
#4
Re: Soldiers in war zones to be exempt from paying income ta

Now that is interesting. It's always been talked about on the fringes on the basis of "why don't we get tax relief" but to have the two main political parties talking about it at the same time would suggest that something might actually come of it in say, a hundred years of so. Nice one.

SF
 

janner

MIA
Book Reviewer
#5
Re: Soldiers in war zones to be exempt from paying income ta

Read the article carefully, its being looked at, nothing has been decided, yet more spin by the Murdoch press on behalf of New Labour
 
#6
Re: Soldiers in war zones to be exempt from paying income ta

janner said:
Read the article carefully, its being looked at, nothing has been decided, yet more spin by the Murdoch press on behalf of New Labour
Oh don't spoil the fun Janner! :( You're right though - well spotted - it will probably be ruled out as other low paid public sector workers would, quite understandably, want it. It was also be difficult to politically justify giving more highly paid officers the concession - yet not to do so could lead to some morale damaging anomalies in remuneration.
 
#7
Re: Soldiers in war zones to be exempt from paying income ta

It is the X Factor mate. The non contributory pension scheme which we know and love so well and has just been replaced by the all new improved?scheme.

Don't think it's 13% anymore either and pretty certain that there were a couple of phased reductions in this amount a few years ago - applicable to new bods, not those in service.

Also not sure what the future is wrt it is. Perhaps someone could clarify on this - scribes?

SF
 
#8
Re: Soldiers in war zones to be exempt from paying income ta

The AFPRB certainly think that the X factor has had its day, but then they also think that remuneration for Service people is good in comparison to civvy street. They quote positive responses to questionnaires that ask things like: Do you think that 13% of the military salary is sufficient as the X factor? It's only sufficient if the salary is enough in the first place and, why should we compare remuneration for Servicemen and women with anybody in the first place?

How many of those in the comparison groups sign up to be put in the proverbial "harm's way", or even to replace firemen when they go on strike? Joe Public is encouraged to believe that Service Personnel get a good deal, so questions are never asked.

A private soldier or scabby AB is worth at least as much as an MP, so UK plc has its priorities all wrong!
 
#9
Re: Soldiers in war zones to be exempt from paying income ta

Even the most low paid civvy seafarers can get their tax back after 183 days out of the country, why should Jack be any different?
13% of shit is shit!
 
#10
Re: Soldiers in war zones to be exempt from paying income ta

asst_dep_to_dep_asst said:
A private soldier or scabby AB is worth at least as much as an MP, so UK plc has its priorities all wrong!
Do you know what an MP earns? Compare it to the private sector.

MP's Remuneration as of April 2005

Members' Parliamentary Salary £59,095
Staffing Allowance £84,081 (maximum)
Incidental Expenses Provision (IEP) £20,000
IT equipment (centrally provided) [worth circa £3,000]
Pension provision for Members' staff Group Stakeholder Arrangement
London Supplement £2,613
Additional Costs Allowance £21,634*
Winding up Allowance £34,694 (maximum - one third of staffing provision plus IEP)
Car Mileage First 10,000 miles 40p per mile
In excess of 10,000 miles 25p per mile
Motorcycle allowance 24p per mile
Bicycle allowance 20p per mile

*The Additional Costs Allowance reimburses Members with constituencies outside inner London for expenses incurred in staying overnight away from home whilst performing parliamentary duties.

source: House of Commons Library Research Paper 05/42

For more on Pension provision, etc see The Green Book.
 
#11
Re: Soldiers in war zones to be exempt from paying income ta

Always_a_Civvy said:
Armed forces pay - soldiers in war zones to be exempted from income tax. This will of course mean that the anomolous situation will arise whereby the junior ranks pay 11% National Insurance whilst those in the higher tax band pay 1% NI! A case of discriminating against the lowest paid ranks still! An improvement nevertheless.

http://www.timesonline.co.uk/newspaper/0,,171-2385487,00.html
Erm - AFAIK higher rate taxpayers still pay 11% NI up to the Upper Earnings Limit (about the same as the higher rate band) and then pay 1% above that - an innovation of that Tartan Thief at No 11 that further erodes the difference between NI and Income Tax.

So everyone who earns more than another, pays more NI than that person. So, Steve, I think you're being a tad disingenuous on that one....
 
#13
Re: Soldiers in war zones to be exempt from paying income ta

Regarding taxation etc, this supposedly independent report says that:

§ Once adjusted for currency, taxation and costs of living the UK consistently appears to offer the highest or second highest base salaries of the countries surveyed, with only Canada providing higher base pay at certain ranks.
§ When base pay, X- factor and allowances on operations (in the UK, Longer Separated Service Allowance and Longer Service at Sea Bonus) are taken into account, the UK package remains ahead of seven of the countries surveyed, broadly in line at most ranks with Ireland, the USA and Canada, but the package is less favourable than that provided across most ranks by Australia and France.
§ The research indicated that the UK attached a higher value to payments reflecting the disadvantages of military life (X- factor in the UK), than other countries surveyed, with the exception of Canada for certain military ranks. In most countries these payments are incorporated in base salary.
The document is actually quite interesting in itself, and it is clearly this report that the Times is talking about, but although the base pay compares (subject to exchange rates etc) well in the UK, this doesn't take into account our historically much much higher tempo of operations, or higher cost of living, or taxation status. From the table on page 33 (37 in PDF), only the Netherlands charges Income Tax to servicemen abroad, so all the Blairite spin about "comparative remuneration" is bollox.

And as for the MoD line in the Times report about not wanting to distinguish between different servicemen in similar jobs, I give you .....Pay 2000! *******.

And as for X Factor - the 2003 AFPRB Report gives a long spiel about how tough service life is, how small 13% is, and how much it should be raised, but then concludes:

2.18 We conclude from the evidence available that the Services remain disadvantaged compared to civilians. We further conclude that there has been a slight increase in that disadvantage, but not, in our judgement, sufficient to raise the X-factor above the current level of 13 per cent. MOD took a similar view in its evidence to us.
I say again. Lickspittle *******.
 
#14
Re: Soldiers in war zones to be exempt from paying income ta

geoffrey said:
Always_a_Civvy said:
Armed forces pay - soldiers in war zones to be exempted from income tax. This will of course mean that the anomolous situation will arise whereby the junior ranks pay 11% National Insurance whilst those in the higher tax band pay 1% NI! A case of discriminating against the lowest paid ranks still! An improvement nevertheless.

http://www.timesonline.co.uk/newspaper/0,,171-2385487,00.html
Erm - AFAIK higher rate taxpayers still pay 11% NI up to the Upper Earnings Limit (about the same as the higher rate band) and then pay 1% above that - an innovation of that Tartan Thief at No 11 that further erodes the difference between NI and Income Tax.

So everyone who earns more than another, pays more NI than that person. So, Steve, I think you're being a tad disingenuous on that one....
My apologies Geoffrey - I thought that was indeed the position, or am I remembering the system under Thatcher? :oops: So you mean that higher rate taxpayers above the upper limit pay 40% income tax plus 12% NI?

Oooooo.... I feel MUCH HAPPIER NOW! :D. Actually that's a bit unfair then: everyone should pay the same rate of NI. :eek:

PS: What does AFAIK stand for? :?:
 

FlagWagger

GCM
Book Reviewer
#15
Re: Soldiers in war zones to be exempt from paying income ta

Always_a_Civvy said:
My apologies Geoffrey - I thought that was indeed the position, or am I remembering the system under Thatcher? :oops: So you mean that higher rate taxpayers above the upper limit pay 40% income tax plus 12% NI?
If only it were so simple.... there is an upper threshold for NI, above which the rate drops to 1% where previously it had been 0%. This threshold is different to the thresholds used for tax. Previusly it meant that all income above this threshold was taxed at the prevailing rate for income tax, whereas now an extra 1% has been effectively added to the tax rate above this threshold.

Always_a_Civvy said:
Oooooo.... I feel MUCH HAPPIER NOW! :D. Actually that's a bit unfair then: everyone should pay the same rate of NI. :eek:
If NI were truly used as the source for NHS, pensions etc then I'd agree, however both NI and Tax revenues both go into the same general bucket. NI is therefore a form of taxation and increases in NI are increases in taxation no matter what Gordon says to the contrary.
 
#16
Re: Soldiers in war zones to be exempt from paying income ta

Always_a_Civvy said:
My apologies Geoffrey - I thought that was indeed the position, or am I remembering the system under Thatcher? :oops: So you mean that higher rate taxpayers above the upper limit pay 40% income tax plus 12% NI?

Oooooo.... I feel MUCH HAPPIER NOW! :D. Actually that's a bit unfair then: everyone should pay the same rate of NI. :eek:

PS: What does AFAIK stand for? :?:
No, not quite. Everyone who pays lower rate (ish) pays 22% tax plus 11% NI (total 33% of earnings) up to about £36k - although the stop points for both types of tax are slightly different and subject to different tax-free allowances. Higher rate taxpayers pay the 33% up to that £36k ish level and then pay 40% tax plus 1% NI (total 41%) with no upper limit.

So the total amount of tax and NI paid is always more, the more you earn. Your point seemed to say that Higher rate taxpayers pay only 1% NI on whole salary, which is silly. I might have misread you though - sorry.

PS AFAIK = As Far As I Know
 
#17
Re: Soldiers in war zones to be exempt from paying income ta

Always_a_Civvy said:
Do you know what an MP earns? Compare it to the private sector.

MP's Remuneration as of April 2005

Members' Parliamentary Salary £59,095
Staffing Allowance £84,081 (maximum)
Incidental Expenses Provision (IEP) £20,000
IT equipment (centrally provided) [worth circa £3,000]
Pension provision for Members' staff Group Stakeholder Arrangement
London Supplement £2,613
Additional Costs Allowance £21,634*
Winding up Allowance £34,694 (maximum - one third of staffing provision plus IEP)
Car Mileage First 10,000 miles 40p per mile
In excess of 10,000 miles 25p per mile
Motorcycle allowance 24p per mile
Bicycle allowance 20p per mile

*The Additional Costs Allowance reimburses Members with constituencies outside inner London for expenses incurred in staying overnight away from home whilst performing parliamentary duties.

source: House of Commons Library Research Paper 05/42

For more on Pension provision, etc see The Green Book.



Its no bloody wonder they are all looking after No1! Isee they get a "winding up allowance" That must mean Tony gets a shit load!
 
#18
Re: Soldiers in war zones to be exempt from paying income ta

geoffrey said:
Always_a_Civvy said:
My apologies Geoffrey - I thought that was indeed the position, or am I remembering the system under Thatcher? :oops: So you mean that higher rate taxpayers above the upper limit pay 40% income tax plus 12% NI?

Oooooo.... I feel MUCH HAPPIER NOW! :D. Actually that's a bit unfair then: everyone should pay the same rate of NI. :eek:

PS: What does AFAIK stand for? :?:
No, not quite. Everyone who pays lower rate (ish) pays 22% tax plus 11% NI (total 33% of earnings) up to about £36k - although the stop points for both types of tax are slightly different and subject to different tax-free allowances. Higher rate taxpayers pay the 33% up to that £36k ish level and then pay 40% tax plus 1% NI (total 41%) with no upper limit.

So the total amount of tax and NI paid is always more, the more you earn. Your point seemed to say that Higher rate taxpayers pay only 1% NI on whole salary, which is silly. I might have misread you though - sorry.

PS AFAIK = As Far As I Know
Talk about complicated Geoffrey! I hadn't realised it was quite that complex. Oh the benefits of being a standard rate taxpayer! I'll stick to criminology and law - much easier to understand!!! - I'm sure Rosie will agree. It makes understanding the average EU Directive seem like child's play! 8O :lol:
 
#19
Re: Soldiers in war zones to be exempt from paying income ta

Does anyone remember the 70's when they trumpeted across the papers what they were doing for us.
1974 or 75 inflation was so bad that they gave us a £4.80 per week pay supplement in lieu of a rise. The following year we go a £5 perweek pay rise. What they forgot to tell everyone was that the £4.80 was incorporated into the payrise so we really only got a 20p pay rise.

Never trust a politician.
 
#20
Re: Soldiers in war zones to be exempt from paying income ta

Lingyai
War Hero



Joined: Mar 29, 2006
Posts: 642
Location: City of Angels, Thailand
Posted: Tue Oct 03, 2006 2:33 pm Post subject: Re: Soldiers in war zones to be exempt from paying income ta

--------------------------------------------------------------------------------
Even the most low paid civvy seafarers can get their tax back after 183 days out of the country, why should Jack be any different?
13% of shit is shit!
_________________

Only if the are out of British waters and have a foreign port visit once in the tax year. If they are in coastal waters and never go anywhere they have to pay tax like everybody else!!! Been there done that.
 

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