Informatika és tudomány

  • SHADOWEYES7
    #2699
    WARNING ORDER
    BY
    COLONEL BRIGADE OF GURKHAS

    FOR ATTENTION OF ALL GURKHA RANKS



    CHANGES IN GURKHA PAY ARRANGEMENTS ARE COMING
    BE PREPARED AND TAKE NOTICE OF THE WARNINGS


    SITUATION

    On the centre pages of this edition of Parbate are the revised gross rates of Universal Addition (UA) and other elements that make up your military salary. When you see them you will notice they have increased considerably since last year. This increase is not due to a massive pay rise in 2006 but a change in the way your salary is to be administered in the future. If your personal circumstances are the same as your British counterpart then your net pay remains broadly equivalent to his.

    THE CHANGE

    This change which was due to be implemented on 1 Apr 06 but due to last minute difficulties it has been delayed until 1 May 06. The change will result in the following:

    • As do British soldiers, you will receive your salary at ‘gross rates’, i.e. without any deductions or charges.

    • You will commence an individual relationship with Her Majesty’s Revenue and Customs (HMRC) (the ‘tax authorities’) and from now on you will be responsible for meeting your liability for Income Tax on not only your military salary but all other taxable income you receive.

    • Before 1 Apr 06, all Gurkhas should have been issued with a National Insurance Number (NINO) confirmed by a personal letter from AFPAA at Glasgow. If one was not notified to you then speak to your RAO staff. Your NINO is personal to you and is the account number allocated for you to use in all your dealings with the tax authorities and any claims for benefits.

    • Deductions will be made for the tax payable on your military salary and the National Insurance Contribution (NIC) you must pay towards the National Health Service (NHS), welfare benefits and State Pensions. These will be paid throughout the year under the Pay As You Earn Scheme (PAYE). You will see a record of the amounts deducted on your monthly pay statement.

    • Charges such as those for food, accommodation and the Charge in Lieu of Council Tax (CILOCT) will be made to your salary at the correct rate appropriate to your personal circumstances and the standard of accommodation you occupy.

    IMPLICATIONS OF THE CHANGE

    One of the benefits you will notice when the change eventually occurs is that when you look through your pay statement you will see exactly what you earn, what tax and NIC deductions will be made and each of the appropriate military charges (accommodation/food/charge in lieu of Council Tax) that will be paid before your ‘net salary’ is deposited into your bank account at the end of the month.

    The changes reported in this article will place greater responsibility on you for your personal finances, in particular your liability for Income Tax and NIC which are both calculated on the basis of your annual gross income.

    Gross taxable income is not necessarily your military salary only, it will include any other taxable income you receive from investments, bank or building society savings accounts, rented property or additional earnings.

    DECLARATION OF TAXABLE INCOME

    Whilst the Army knows what your military salary is and will pay the tax due on it for you, it will not know what additional income you receive.

    It is up to you to tell the tax authorities what extra income you receive for them to work out any additional tax that you need to pay. If you don’t tell them you will be evading the payment of tax.

    Tax evasion is illegal and criminal penalties apply, and so, if you are caught evading tax you could be fined and even imprisoned. Think what impact that would have not only on your military career but also your family.


    KEY MESSAGE IS: DO NOT GET ACCUSED OF TAX EVASION


    • PROPERTY OWNERSHIP It is well known that Gurkhas now own properties in the UK and that some are receiving rent by letting them.

    • SECOND EMPLOYMENT It is also known that Gurkhas are undertaking temporary employment when they are off duty without the permission of their commanding officers.

    • INVESTIGATION It is likely that the tax authorities also know about these activities. In which case, anyone who has not declared the income received from these sort of activities, is strongly advised to do so and before they are ambushed.

    • ACTION Act now and avoid having to face the consequences that could place your career and family at risk – speak to your commanders and RAO staff.

    CONSULT - SEEK OFFICIAL ADVICE

    As you read through the list of changes and the advice given in this article a number of questions will have come into your head. If they have not already been answered in unit briefings or you are still unsure then you need to talk to your commanders, or RAO staff, or access sites on the internet and find out. A site that will assist with details on such topics as tax, NIC, benefits and tax on property rent, is: www.direct.gov.uk.





    Original Signed
    D G HAYES
    Colonel
    Colonel Brigade of Gurkhas 12 April 2006