Stoppages From Pay
If you live in Service Family Accommodation (Naval Family Quarter) you will be charged for rent and Council Tax, which will be deducted from the salary of the serving person. Changes to the cost of quarters and garages are usually announced at the same time as changes in military salaries. In general wherever you are in the world you will pay the same for a similar type of quarter, except for different grading within actual house types.
Service personnel are also liable for income tax, even when serving overseas, and tax returns should always be completed and returned promptly to the tax authority. Service personnel also pay National Insurance contributions and are therefore entitled to all relevant benefits such as Child Benefit.
Food & Accommodation Charges
All single personnel (Marital Categories C3-C5) are required to pay for their food, and most are required to pay for their accommodation, when victualled in shore establishments. Married personnel (Marital categories C1-C2) victualled in shore establishments are required to pay for their food, but at a lower rate than single personnel. Most married personnel in shore establishments are exempt from paying accommodation charges. All personnel victualled in ships are exempt from paying food and accommodation charges, although those who live ashore in base port now pay for food taken onboard when the ship is in base port. Changes to the cost of food and accommodation charges are usually announced at the same time as changes in military salaries.
Service Family Quarters & Garage Charges (SFA, GAR)
If you live in Services Family Accommodation (SFA - formerly known as the Naval 'married quarter') you will be charged for rent, which will be deducted from the salary of the serving person. Changes to the cost of quarters and garages are usually announced at the same time as changes in military salaries. In general wherever you are in the world you will pay the same for a similar type of quarter, except for different grading within actual house types. Your local Defence Estates Office or Unit Personnel Office will be able to help you with any queries regarding SFA charges.
Contribution in Lieu of Council Tax (CILOCT)
Technically all MOD property is exempt from Council Tax as far as the occupants are concerned, since all payments due to Local Authorities will be made by MOD. However, contributions roughly equal to Council Tax liability are paid by Service Families Accommodation (SFA) occupants in England, Scotland and Wales and by personnel occupying Single Living Accommodation (SLA).
These are known as "Contributions in Lieu of Council Tax" (CILOCT) and are collected together with accommodation charges. Contributions are graded according to the type of accommodation. SFA of the same type and grade are liable to the same standard contribution with SLA rates for Officers, Senior Rates and Junior Rates. There is no charge for those Service personnel under 18 years of age. The majority of SFA come in line with Bands B and C. Your local Defence Estates Office or Unit Personnel Office will be able to help you with any queries regarding CILOCT charges
Web site: Valuation Office Agency - Council Tax Advice
Web site: Citizens Advice Bureau - Council Tax Advice Sheet
The method of collecting income tax from the pay of service personnel is known as the Pay-As-You-Earn (PAYE) system. It provides for the assessment of tax based on the previous year's earnings less certain allowances. Under the PAYE system each Officer and Rating/Other Rank is allocated a tax code that is reviewed annually on which tax payments are based. Income Tax matters are a private matter, which should only be conducted between you and Her Majesty’s Revenue and Customs (HMRC) formerly the Inland Revenue. Your employer's PAYE Reference Number is 943/1. Further information on how to contact HMRC can be found on the HMRC Web site.
Phone: 0845 300 3949 - IR Public Department 4
Web site: Inland Revenue - Income Tax
Web site: Citizens Advice Bureau - Tax Guides
National Insurance Contributions (NIC)
Earnings Related National Insurance Contributions (ERNIC) are collected along with Income Tax under the PAYE procedure. They consist of primary contributions from employed earners and secondary contributions from employers. Contributions from HM Forces employees are deducted at source from the service pay of all members of the Forces. All insurable personnel have a National Insurance (NI) number, which is to be quoted on any correspondence affecting an individual's insurance. Further information on how to contact HMRC can be found on the HMRC Web site.
Web site: Inland Revenue - National Insurance
Phone: 0845 300 3949 - IR Public Department 4