It takes a lot to prepare you for a career in the Armed Forces. It's the most challenging work you can find, and you need serious training to get through it. For all the blood, sweat and tears it takes to get in, there can be a number of challenges waiting for you when you get out.

Many servicemen and women are moving on from military careers and then finding they don’t have all information they need about tax and HMRC. Even if you have a plan for moving on, you may not know what support and help is available to see it through and there's more back-up out there than you might think.

TRAVEL TAX REFUNDS

We work with thousands of MOD personnel every day here at RIFT, and a lot of them stay with us even after leaving the forces. Leaving the forces may be the right choice for you, but leaving your own money behind when you go probably isn't. For example, tax refunds for things like travel to temporary postings are easily missed.
 
You can claim for four years' worth of eligible expenses, even after you’ve left, so your refund could be worth £2,500 on average. Or if you’re going to a new job that involves travelling to temporary workplaces, you may still need to claim your annual tax refunds.

RIFT: Operation Tax Refund

We also work with service leavers who become self-employed or start a business and need help with tax returns or accounting. We’ve also found that service personnel sometimes just need a bit of help dealing with the obstacle courses of pensions, mortgages and completing Self-Assessment tax returns.
 
Whatever route you decide on, we’re here to sweep the minefield for you.

RECRUITMENT ON CIVVY STREET

Service leavers have told us that one of the first problems they hit is that their value isn't always recognised by employers back on civvy street. It's crazy, but way too many businesses (particularly smaller ones) don’t think about taking on former MOD personnel when recruiting.
 
That attitude's starting to change, thankfully, and it's easy to see why. Employers are looking for people who can handle leadership and are team players in stressful conditions. Why would they look any further than someone who served in the Armed Forces?
 
If you’ve decide to strike out on the self-employment trail or to set up your own businesses, it's worth going in with your eyes open. It’s easy to get caught out in the first year by HMRC regulations that you’ve never had to bother with before.  There's some governmental help on offer in the form of the Career Transition Programme, though, so make the most of that.
 
The CTP's designed to help service leavers make the leap to turning their skills and experience into new career options. It's just been expanded to widen the range of people it covers, so it's definitely worth looking into.

SELF-ASSESSMENT

Speaking of keeping your records accurate, remember it's not just the self-employed who need to fill out Self Assessment tax returns. For example, HMRC is also going to want to hear from you if you've:

  • Brought in more than £2,500 in untaxed income (renting out a property, for example).
  • Made over £10,000 from savings or investments, before tax.
  • Got profits from selling things like shares or second homes.
  • Been working as a Company Director.
  • Claimed Child Benefit if you or your partner is making over £50,000.
  • Got money coming in from abroad, or lived abroad but had a UK income.
  • Received share dividends as a higher-rate taxpayer.

SETTING UP YOUR OWN BUSINESS

As with anyone starting up on their own, there's the choice between being a Sole Trader or a Limited Company to think over. There's a lot to consider here, but the bottom line is that being a Sole Trader's a little cheaper and simpler. Limited Companies, on the other hand, are a bit more complicated but generally safer.
 
You get some valuable protections, but your company's money is no longer entirely "yours". This is the kind of decision RIFT helps with all the time, so always get in touch if you want help before making a final decision.

ARMED FORCES PENSION

If you're getting a pension from the Armed Forces then you may need to complete a Self-Assessment Tax Return even if you’re retired. If you do start a new job, you're going to get taxed on both your salary and the pension.
 
It's your job to make sure HMRC has all your details straight. Otherwise, you'll probably end up with some unwelcome bills for unpaid tax.
 
Life after the Armed Forces can be every bit the adventure that life in it was. The dangers and opportunities are different, but they're no less real for that. You're making decisions you'll be living with for years to come, so make sure you've taken the best advice available.
 
Get in touch with RIFT to see how we can help, and let's talk some serious strategy.

Armed Forces or MOD personnel can claim against travel expenses on to temporary postings of under 24 months, even outside the UK. Using either your own vehicle or public transport counts. You can claim any overpaid tax for the last 4 years, and the RIFT average 4 year rebate is £2,500.

If you're in the Armed Forces and making your own way to more than one base, chances are you're owed a refund. HMRC takes a big enough bite out of your pay already. Don't let them hold onto cash that's supposed to be in your pocket.