What deductions can be taken from my salary?
In addition to the pay and allowances that service personnel receive there are also deductions taken from their total cash remuneration. Normally these deductions are taken from your net pay; net pay is your gross pay plus allowances minus your tax and National Insurance contributions (NIC).
The basis on which the armed forces provide you with accommodation and associated services is set out in the Ministry of Defence (MOD) document JSP 464 “Tri Service Accommodation Regulations”. Service personnel do not have to pay any tax in respect of the accommodation provided to them as it is 'job related' and therefore exempt from tax.
You must make a contribution towards the cost of the accommodation. Details of these contributions, generally known as charges, are set out in Chapter 9 of the MOD document JSP 754 “Tri-Service Regulations for Pay and Charges” that you can access via the Defence Intranet.
The accommodation charge includes a contribution towards water, sewerage and furniture. If you are living in single accommodation the charge will also normally include a contribution towards the cost of fuel and light. If you have access to a garage or similar then you may have to pay a charge for this.
If you live in family accommodation and gas and/or electricity is provided via an armed forces supply then you will have to pay a separate fuel and lighting charge. If the utility supplier invoices the property separately you will settle these bills directly.
In addition to the accommodation charge, service personnel make a Contribution in Lieu of Council Tax (CILOCT). The amount of this contribution is determined by the MOD.
Joint Personnel Administration Centre (JPAC) deduct these charges from your net, that is, after tax, pay.
Service personnel may pay a Daily Food Charge (DFC) in respect of food provided to them at certain locations.
JPAC deduct this charge from your net (after tax) pay.
You may choose to contribute voluntarily to various schemes. These voluntary deductions are set out in Chapter 2, section 7 of JSP 754. If tax relief is available, for example under the Payroll Giving Scheme, then JPAC deduct the payment from your gross (before tax) salary and this means that you receive the tax relief automatically when you make the payment.
If you have taken out a loan under either the Forces Help to Buy (FHTB) or the Long Service Advance of Pay (LSAP) scheme then you will also be paying back this loan in accordance with the rules of the scheme. JPAC deduct these repayments from your net (after tax) salary.
You can see how JPAC make these deductions from your payslip by looking at the examples in our separate section on understanding your payslip.